What is your rate of return on this position

Assignment Help Financial Management
Reference no: EM131890027

You sell short 200 shares of BSX at $50 per share. You post the 50% margin required for the short sale. Assume you pay 5% interest on the initial value of the loan of shares. The company stock pays dividends of $0.48 per share every quarter. What is your rate of return on this position, if you close it out at $32 per share after one year?

Reference no: EM131890027

Questions Cloud

Explain how a service is configured : csc3412 - differences between different Unix distributions-the question explicitly states discuss the Linux version only - The report with examples
Compute point price elasticity of demand for bearing grease : Calculate the point price elasticity of demand for bearing grease. Calculate the optimal price for bearing grease if marginal cost is $4.60 per unit.
Write a sub procedure that plays the game ro-sham-bo : IE 212 Homework: Programming Structures. Write a sub procedure that plays game Ro-Sham-Bo (a.k.a., Rock, Paper, Scissors) for player and computer opponent
Model of aggregate demand and aggregate supply : Explain Home Depot's economic fluctuations and how shifts in either aggregate demand or aggregate supply can cause booms and recessions
What is your rate of return on this position : What is your rate of return on this position, if you close it out at $32 per share after one year?
Resulting change in equilibrium price and quantity : When demand changes, how does the elasticity of supply effect the resulting change in equilibrium price and quantity? Why so?
Discuss the purpose of each states reform : Describe a minimum of three specific examples of similarities and differences in healthcare reform policies in the two states.
Federal reserve intended to address : What market failures are the Federal Reserve intended to address?
Define the zones surrounding the lake : Define the zones surrounding the lake. These may be defined by concentric circles around the lake or by geographic divisions.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the yield on two-year treasury securities

The real risk-free rate is 2.75%. Inflation is expected to be 1.5% this year and 3.75% during the next 2 years. What is the yield on 2-year Treasury securities?

  What is the stock beta coefficient

A stock has a required return of 12%. The risk-free rate is 6% and the market risk premium is 5%. What is the stock's beta coefficient?

  Develop and describe a strategic measurement

develop and describe a strategic measurement ldquoscorecardrdquo that might be incorporated with the financial measures

  What is the underlying factor that would cause such a change

What is the underlying factor that would cause such a change? Give an explanation based on the IFE of the forces that would cause a change in the Australian dollar.

  How many batteries you expect to last fewer than 375 cycles

The useful lifetime of a test sample of a certain laptop battery is normally distributed with a mean of 750 charge-discharge cycles and a standard deviation of 125 cycles. - How many batteries out of a 3000 battery sample would you expect to last f..

  What is the addition to retained earnings

Chevelle, Inc. has sales of $487,000 and costs of $394,500. The depreciation expense is $43,800. Interest paid equals $18,200 and dividends paid equal $6,500. The tax rate is 35 percent. What is the addition to retained earnings?

  How would you revise your expectation of the rate of return

Investors expect the market rate of return this year to be 15.50%. The expected rate of return on a stock with a beta of 1.4 is currently 21.70%. If the market return this year turns out to be 12.90%, how would you revise your expectation of the rate..

  What is the percentage price change of these bonds

Bond J has a coupon rate of 4 percent and Bond K has a coupon rate of 10 percent. Both bonds have 17 years to maturity, make semi annual payments, and have a YTM of 7 percent. If interest rates suddenly rise by 2 percent, what is the percentage price..

  Along the lines of ratios

Along the lines of ratios - the SEC has recently approved a rule that companies be required to show the difference in pay between their CEOs and ordinary employees. Comparing this ratio to the industry average, how would you interpret the ratio as be..

  Required to fill the operating room staffing positions

Metropolis Health System (MHS) uses a basic work week of 40 hours throughout the sys- tem. Thus, one full-time employee works 40 hours per week. MHS also uses a standard 24-hour scheduling system of three 8-hour shifts. Set up a staffing requirements..

  Payback of project that requires an initial investment

Which comes closest to the payback of a project that requires an initial investment of $195, produces cash flows of $22 at the end of each year for 5 consecutive years beginning in one year, and provides a final cash flow at the end of year 6 of $60?..

  What is the bond yield to maturity

What is the bond's yield to maturity (expressed as an APR with semi-annual compounding)?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd