On January 1, you sold short two round lots (that is, 200 shares) of Four Sisters...
On January 1, you sold short two round lots (that is, 200 shares) of Four Sisters stock at $25 per share. On March 1, a dividend of $3.00 per share was paid. On April 1, you covered the short sale by buying the stock at a price of $22 per share. You paid 50 cents per share in commissions for each transaction.
What is the value of your account on April 1?
Homework Answers
Value of account = profit on short sale
profit on short sale = number of shares short sold * (sale price - buy price - commission per share)
profit on short sale = 200 * ($25 - $22 - $0.50) = $500
Value of account = $500
Note :- the dividend is collected by you, and paid to the party which lent you the shares. Hence, the dividends are not added to the value of the account
Add Answer to:
On January 1, you sold short two round lots (that is, 200
shares) of Four Sisters...
On January 1, you sold short three round lots (that is, 300 shares) of Four Sisters stock at $73 per share. On Marc...
On January 1, you sold short three round lots (that is, 300 shares) of Four Sisters stock at $73 per share. On March 1, a dividend of $1.00 per share was paid. On April 1 you covered the short sale by buying the stock at a price of $66 per share. You paid 50 cents per share in commissions for each transaction What is the value of your account on April 17 (Negative amount should be indicated by a minus...
. On January 1, you tell your broker to sell short 500 shares of Apple Inc....
. On January 1, you tell your broker to sell short 500 shares of Apple Inc. stock at a price of $100 per share. You use $30,000 cash to serve as a margin. (a) (5 points) How high can the stock price go before you get a margin call if the maintenance margin is 50%? (b) Assume that on April 1, a dividend of $4 per share was paid. On May 1, you covered the short sale by buying the...
Ch 3, Question 13 Here is some price information on Marriott Marriot 39.95 40.05 Bid Ask...
Ch 3, Question 13 Here is some price information on Marriott Marriot 39.95 40.05 Bid Ask You have placed a stop-loss order to sell at $40. What are you telling your broker? Given market prices, will your order be executed? Question 15 You have borrowed $20,000 on margin to buy shares in Disney, which in now selling at $40 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the...
On January 23, Bayshore Corporation, for the first time in its short history, purchased 200 shares...
On January 23, Bayshore Corporation, for the first time in its short history, purchased 200 shares of its own common stock for $40 a share. On March 31, it sold 100 of those shares for $45 a share and properly recorded $500 as additional paid-in capital. On April 15, it sold the remaining 100 shares for $30 a share. Prepare the journal entry to record the April 15th transaction.
You bought 100 shares of Haslett Helicopters, Inc., in January 2016 for $67.26 per share (assume...
You bought 100 shares of Haslett Helicopters, Inc., in January 2016 for $67.26 per share (assume no commissions, so you spent a total of $6726). The company pays dividends annually, and in 2016 it paid a dividend of 62 cents per share; in 2017 the dividend was 74 cents per share; it 2018 it suspended its dividend indefinitely (i.e., no dividend was paid in 2018 or 2019). You sold the stock in January 2019 at $52.78 (again assume no commissions)....
At January 1, 2017, Martinez Company's outstanding shares included the following. 298,000 shares of $50 par...
At January 1, 2017, Martinez Company's outstanding shares included the following. 298,000 shares of $50 par value, 8% cumulative preferred stock 886,000 shares of $1 par value common stock Net income for 2017 was $2,513,000. No cash dividends were declared or paid during 2017. On February 15, 2018, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2017. On April 1, 2017, 429,000 shares...
You sold short 1,000 shares of a stock at $46 per share. The initial margin is...
You sold short 1,000 shares of a stock at $46 per share. The initial margin is 50%. a) At what stock price would you receive a margin call if the maintenance margin is 35%? (do not consider dividends in question a) b) Assume that the stock paid a $0.25 dividend per share each quarter, what is the rate of return if you buy to cover the shares at $40 per share at the end of the quarter?
Z-Sisters Corporation has one class of voting common stock, of which 1,000 shares are issued and...
Z-Sisters Corporation has one class of voting common stock, of which 1,000 shares are issued and outstanding. The shares are owned as follows: Shares Lourdes Vick 400 Anita Vick (Lourdes’s daughter) 200 Liz Vick (Lourdes’s daughter) 200 Cat Labrillazo (unrelated) 200 Total 1000 Z-Sisters Corporation has current E&P of $300,000 for this year and accumulated E&P at January 1 of this year of $500,000. During this year, the corporation made the following distributions to its shareholders: 03/31: Paid a dividend...
On January 1, 2018, Gerlach Inc. had the following account balances in its shareholders' equity accounts....
On January 1, 2018, Gerlach Inc. had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 244,000 shares issued 244,000 Paid-in capital - excess of par, common 488,000 Paid-in capital - excess of par, preferred 180,000 Preferred stock, $100 par, 18,000 shares outstanding 1,800,000 Retained earnings 3,600,000 Treasury stock, at cost, 4,400 shares 22,000 During 2018, Gerlach Inc. had several transactions relating to common stock. January 15: Declared a property dividend of 100,000 shares of Slowdown...
At January 1, 2017, Pina Company's outstanding shares included the following. 298,000 shares of $50 par...
At January 1, 2017, Pina Company's outstanding shares included the following. 298,000 shares of $50 par value, 7% cumulative preferred stock 921,000 shares of $1 par value common stock Net income for 2017 was $2,560,000. No cash dividends were declared or paid during 2017. On February 15, 2018, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2017. On April 1, 2017, 426,000 shares...
On January 1, you sold short three round lots (that is, 300 shares) of Four Sisters stock at $73 per share. On March 1, a dividend of $1.00 per share was paid. On April 1 you covered the short sale by buying the stock at a price of $66 per share. You paid 50 cents per share in commissions for each transaction What is the value of your account on April 17 (Negative amount should be indicated by a minus...
Ch 3, Question 13 Here is some price information on Marriott Marriot 39.95 40.05 Bid Ask You have placed a stop-loss order to sell at $40. What are you telling your broker? Given market prices, will your order be executed? Question 15 You have borrowed $20,000 on margin to buy shares in Disney, which in now selling at $40 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the...
At January 1, 2017, Martinez Company's outstanding shares included the following. 298,000 shares of $50 par value, 8% cumulative preferred stock 886,000 shares of $1 par value common stock Net income for 2017 was $2,513,000. No cash dividends were declared or paid during 2017. On February 15, 2018, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2017. On April 1, 2017, 429,000 shares...
At January 1, 2017, Pina Company's outstanding shares included the following. 298,000 shares of $50 par value, 7% cumulative preferred stock 921,000 shares of $1 par value common stock Net income for 2017 was $2,560,000. No cash dividends were declared or paid during 2017. On February 15, 2018, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2017. On April 1, 2017, 426,000 shares...
Most questions answered within 3 hours.
-
HBR Article: How to Act Quickly Without Sacrificing Critical
Thinking
Read the attached Harvard Business Review...
asked 2 minutes ago -
if
we have a large voluntary respond sample consistings of weights of
subject who choose to...
asked 4 minutes ago -
consider a simple economy that prodices only pens the
following contains information on the economys money...
asked 17 minutes ago -
calculate the mass of magnesium metal that must be reacted with
hydrochloric acid to produce 1.00...
asked 21 minutes ago -
On a can of sardines it is written that the can contains 10
sardines. You open...
asked 36 minutes ago -
Eminent domain is the right of government to acquire private
land, without the owner’s consent, for...
asked 42 minutes ago -
3. A two-workstation cell uses a kanban system to produce
200,000 parts per year. Expected leadtime...
asked 51 minutes ago -
Let Y1,…, Y18 be a random sample from a uniform distribution on
the interval (0, θ],...
asked 55 minutes ago -
Two charges q1 = −3.20 nC and q2 = +8.42 nC are at a distance of...
asked 57 minutes ago -
in
a survey of 1433 people,909 people said they voted in a recent
presidential election.Voting records...
asked 57 minutes ago -
The factor of incentive scheme fail is because of rewards
rupture relationships. Explains
(in 300 words)
asked 1 hour ago -
Given an operating system that supports a one-to-one
relationship between user-level threads and kernel-level threads
and...
asked 1 hour ago