Problem 2-25 Calculating Short Sale Returns (LO4, CFA3) You just sold short 850 shares of Wetscope, Incorporated, a fledgling software firm, at $60 per share. You cover your short when the price hits $50.50 per share one year later. If the company paid $0.67 per share in dividends over this period, what is your rate of return on the investment? Assume an initial margin of 55 percent. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Rate of return %

Problem 2-25 Calculating Short Sale Returns (LO4, CFA3) You just sold short 850 shares of Wetscope, Incorporated, a fledgling software firm, at $60 per share. You cover your short when the price hits $50.50 per share one year later. If the company paid $0.67 per share in dividends over this period, what is your rate of return on the investment? Assume an initial margin of 55 percent. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Rate of return %

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter3: The Financial Environment: Markets, Institutions And Investment Banking

Section: Chapter Questions

Problem 15PROB

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