Exhibit 4.4 Use the Information Below for the Following Problem(S)

question 57

Multiple Choice

Exhibit 4.4
Use the Information Below for the Following Problem(S)
You decide to sell 100 shares of Davis Industries short when it is selling at its yearly high of $35. Your broker tells you that your margin requirement is 55 percent and that the commission on the sale is $15. While you are short, Davis pays a $0.75 per share dividend. At the end of one year you buy your Davis shares (cover your short sale) at $30 and are charged a commission of $15 and a 6 percent interest rate.
-Refer to Exhibit 4.4.What is your dollar return on the investment?

• A) $130.50
• B) $300.50
• C) $100.00
• D) $1,773.75
• E) $3,500.00

Differentiate between the gross and net method of recording hedging transactions.

Illustrate the impact of foreign currency exchange rate changes on financial statements.

Compare and analyze hedge accounting under International Financial Reporting Standards (IFRS) and Accounting Standards for Private Enterprises (ASPE).

Understand the role and functionality of FTP in website management.

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Definitions:

Market Value

The existing cost for purchasing or selling an asset or service in the public marketplace.

Stock Price

The monetary value of a share of a company's stock traded on a stock exchange.

Reverse Stock Splits

A corporate action in which a company reduces the total number of its outstanding shares to increase the share price without altering the company's market capitalization.

Shares Outstanding

The total number of shares of stock that are currently owned by shareholders, including those held by institutional investors and restricted shares.