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

Understand the importance and methods of organizing information in communication.

Recognize the ethical considerations in communicating effectively.

Identify the impact of individual perceptions on the interpretation of messages.

Adapt messages based on audience characteristics like economic level, age, and cultural background.

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Definitions:

Simple Interest

Interest computed solely on the initial amount invested, excluding any previously earned interest.

Investment

The undertaking of investing resources, usually capital, with the foresight of amassing income or profits.

Months

Units of time, typically used to measure periods within a year, consisting of 28 to 31 days.

Invested

Assigning monetary assets with the prospect of gaining returns or profit.