Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. can you please solve this ? you decide to sell s

Can you please solve this ? You decide to sell short 300 shares...

70.2K

Verified Solution

Question

Finance

image

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

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Geometry
1.2K views

20 Identify the coordinates of the center the vertices foci and the equation of the...

Chemistry
1.2K views

Using standard reduction potentials, calculate the standard emf, free energy, and equilibrium constant at 298K for...

Chemistry
1.2K views

Suppose that you have 175mL of a buffer that is .150M in both formic acid and...

Finance
1.2K views

During the summer and fall of 2008, the U.S. financial system and financial systems around the...

Biology
1.2K views

A hypothetical epigenetic mark is added to a histone tail which induces relaxation of the...

Calculus
1.2K views

Let f x 10x 8 17e Then the equation of the tangent line to the...

Calculus
1.2K views

Integrate f x y z The integral of f is x y z 2 2...

Accounting
1.2K views

Zira Co. reports the following production budget for the next four months. April May June...

Accounting
1.2K views

Exercise 14-5 Straight-Line: Recording bond issuance and discount amortization LO P1, P2 Dobbs Company issues...

Accounting
1.2K views

An exchange of value between two entities that yields a change in the accounting equation...

Accounting
1.2K views

Wyckam Manufacturing Inc. has provided the following information concerning its manufacturing costs: Fixed Cost per...

Accounting
1.2K views

Unit operating expenses for an item costing $50 are estimated at 30% of cost, and...