Question: Short Sales Action or Formula Ending Return on for Column B St Price Investment Initial Investment $500,000.00 Initial Stock Price $100.00 $170.00 Number of Shares

Short Sales Action or Formula Ending Return on
for Column B St Price Investment
Initial Investment $500,000.00
Initial Stock Price $100.00 $170.00
Number of Shares Sold Short 10,000 (B4/B9)/B5 160.00
Ending Stock Price $70.00 Enter data 150.00
Cash Dividends Per Share $0.00 140.00
Initial Equity Percentage 50.00% 130.00
Maintenance Margin Percentage 30.00% 120.00
110.00
Return on Short Sale 100.00
Capital Gain on Stock $300,000.00 B6*(B5-B7) 90.00
Dividends Paid $0.00 B8*B6 80.00
Net Income $300,000.00 B13-B14 70.00
Initial Investment $500,000.00 B4 60.00
Return on Investment 60.00% B15/B16 50.00
40.00
Margin Positions 30.00
Margin Based on Ending Price 114.29% (B4+(B5*B6)-B14-(B6*B7))/(B6*B7) 20.00
10.00
Price for Margin Call $115.38 (B4+(B5*B6)-B14)/(B6*(1+B10))

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!