Exhibit 4.5 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 23

Multiple Choice

Exhibit 4.5
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
You decide to sell 100 shares of Topgun Enterprises Inc. short when it is selling at its yearly high of $42.25. Your broker tells you that your margin requirement is 60 percent and that the commission on the sale is $20. While you are short, Topgun pays a $0.85 per share dividend. At the end of one year you buy your Topgun shares (cover your short sale) at $44 and are charged a commission of $20 and a 5 percent interest rate.
-Refer to Exhibit 4.5. What is your dollar return on the investment?

• A)$384.50
• B)$432.88
• C)-$432.88
• D)-$384.50
• E)-$950.55

Understand the characteristics and differences between various sources of finance such as debt capital, equity capital, commercial paper, and venture capital.

Identify the roles and investment strategies of institutional investors like hedge funds, venture capitalists, and sovereign wealth funds.

Comprehend the concepts and financial implications of corporate actions including mergers, acquisitions, divestitures, and spin-offs.

Recognize the financial instruments and strategies used in raising funds including private placements, public offerings, and leveraged buyouts.

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Definitions:

Type 1 Diabetes

An autoimmune condition where the pancreas produces little to no insulin, necessitating lifelong insulin administration.

Body Mass Index

A numerical value derived from a person's weight and height, used to assess whether they are underweight, overweight, or within a healthy weight range.

Blood Glucose Level

The amount of sugar present in the blood, important for diagnosing and managing diabetes.

Prediabetes

A condition with higher than normal blood sugar levels, but not high enough to be classified as type 2 diabetes, indicating a high risk for developing diabetes in the future.