Examlex
Exhibit 4.8
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
You sell 100 shares short of AMF Corporation when it is selling at $45 per share. Your margin requirement is 60% and the commission on the sale is $50 and the broker charges 10% annual interest. AMF Corporation paid a $0.50 per share dividend while you were short the stock. After one year you cover your short sale at $35 per share with a $50 commission for the purchase.
-Refer to Exhibit 4.8.What is your total dollar return on this investment?
Profit
The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.
GDP
Gross Domestic Product, the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.
OEM
Original Equipment Manufacturer, referring to companies that produce parts or equipment that may be marketed by another manufacturer.
GNI
Gross National Income, which is the total domestic and foreign output claimed by residents of a country, including salaries, product earnings, and property income.
Q17: Studies of the relationship between P/E ratios
Q23: The error caused by not using the
Q24: Refer to Exhibit 3.1. What is the
Q24: Refer to Exhibit 4.1. How many shares
Q25: For an investor with a time horizon
Q25: The original maturity of a United States
Q28: A price-weighted index such as the DJIA
Q74: If over the past 20 years the
Q79: It is very important when diversifying that
Q88: The expected return for a stock, calculated