Assume you sell short 100 shares of common stock at $30 per share, with initial margin at 50%. You repurchase the stock at $25 per share 90 days later The stock paid $2 in dividends during the period, and you did not remove any money from the account before making the offsetting transaction. The broker charged $0.50 per share as commission. Minimum maintenance margin is 30% a. Show the T-Account with initial short position and calculate the margin. b. Show T-Account when the stock price drops to $25. Show margin calculations. c. What is your 90-day rate of return

Which of the following statements is correct? a. the managers of established, stable companies sometimes attempt to get their state legislatures to remove rules that make it more difficult for raiders to succeed with hostile takeovers. b. hostile takeovers are most likely to occur when a firm's stock is selling below its intrinsic value as a result of poor management. c. stockholders in general would be better off if managers never disclosed favorable events and therefore caused the price of the firm's stock to sell at a price below its intrinsic value. d. the efficiency of the u.s. economy would probably be increased if hostile takeovers were absolutely forbidden. e. in general, it is more in bondholders' interests than stockholders' interests for a firm to shift its investment focus away from safe, stable investments and into risky investments, especially those that primarily involve research and development. icon key question 6 of 10 b multiple choice 01-060