Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. you are bearish on bark river machine and tool com

You are bearish on Bark River Machine and Tool Company. You establish a margin account...

90.2K

Verified Solution

Question

Accounting

You are bearish on Bark River Machine and Tool Company. You establish a margin account with your broker. You sell short two round lots (200 shares) for $63.12 per share, January 1st, depositing the proceeds in an escrow account that earns interest. On December 1st, a dividend of $1.61 per share was paid. On December 31st, you covered the short sale by buying the stock for the price of $61.94. You paid $0.20 per share in commissions for each transaction and earned 1% interest on your margin account.
\table[[Bark River Machine and Tool Company],[Market Price, January 1,$63.12,],[Dividend, December 1,$1.61,],[Market Price, December 31,$61.94,]]
\table[[Broker],[Commission, per Share,$0.20
image

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