Can you please solve this ? You decide to sell short 300 shares...
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Can you please solve this ?
You decide to sell short 300 shares of Beximco when it is selling at its 4 poir yearly high of BDT 105. Your broker tells you that your margin requirement is 55 percent and that the commission on the sale is BDT 20. While you are short, Beximco pays a BDT 2.00 per share dividend. At the end of one year you buy your Beximco shares (cover your short sale) at BDT 90 and are charged a commission of BDT 20 and a 6 percent interest rate. What is your rate of return on the investment? 1 Add file
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