Given the following information, determine the price-earnings ratio. market price of common stock at year-end $55.00 earnings per share 8.00 dividends per share 4.00 a. 6.9 b. 13.75 c. 6.9% d. 14.5%

You are bearish on telecom and decide to sell short 100 shares at the current market price of $50 per share. a. how much in cash or securities must you put into your brokerage account if the broker’s initial margin requirement is 50% of the value of the short position? b. how high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position? (input the amount as a positive value. round your answer to 2 decimal places.)