Exhibit 4.5 Use the Information Below for the Following Problem(S)

question 69

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 rate of return on the investment?

• A) 10.48%
• B) 12.87%
• C) -13.98%
• D) -24.49%
• E) -15.05%

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Definitions:

Operational Excellence

The pursuit of conducting business in a manner that continuously improves performance and delivers value through efficient processes, innovation, and quality management.

Product Leadership

A market strategy focus, where a company aims to continuously offer one of the most innovative and high-quality products in the market.

Customer Intimacy

A business strategy that focuses on personalization and customer care, creating close relationships with customers to understand and meet their needs in a unique way.

Operational Excellence

refers to the strategic practice of improving efficiency, productivity, and effectiveness in an organization's operations.