Bark River Machine and Tool Company Market Price, January 1 $60.00 Dividend, December 31 $2.00 Market...

 

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Bark River Machine and Tool Company Market Price, January 1 $60.00 Dividend, December 31 $2.00 Market Price, December 31 $65.00 Broker Commission, per Share Maintenance Margin Investor Money Invested in Margin Account Shares Sold Short $0.25 0.35 $7,500 200 Required: Using the information in the tables above (the Company, the Broker, and the Investor), solve the cash flows involved in the short sale of this company. Then calculate the rate of return. Finish this problem by solving for the price at which the investor receives a margin call. (Use cells A5 to B15 from the given information to complete this question.) Net Proceeds from Short Sale Money Borrow from broker Dividend Payment Buyback Proceeds Net Profit Percent Return on Investment Margin Call Price Short Sale Bark River Machine and Tool Company Market Price, January 1 $60.00 Dividend, December 31 $2.00 Market Price, December 31 $65.00 Broker Commission, per Share Maintenance Margin Investor Money Invested in Margin Account Shares Sold Short $0.25 0.35 $7,500 200 Required: Using the information in the tables above (the Company, the Broker, and the Investor), solve the cash flows involved in the short sale of this company. Then calculate the rate of return. Finish this problem by solving for the price at which the investor receives a margin call. (Use cells A5 to B15 from the given information to complete this question.) Net Proceeds from Short Sale Money Borrow from broker Dividend Payment Buyback Proceeds Net Profit Percent Return on Investment Margin Call Price Short Sale