Ritesh does not own any shares of MMM company so he sells 100 shares short. His execution price for the sale is $51. His broker gives him the following terms on the short sale: Margin Requirement: 60% The stock subsequently fell to $42 and he decided to cover his position. During the time he was short the MMM company paid a cash dividend of $1 per share. What was his percentage earned (or lost) for this transaction? -22.44% -26.14% -16.67% +22.44% +16.67% +26.14%
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- Bob is 60 years old, single and a member of the Defined Benefits division at UniSuper (Australia‘s largest corporate superfund with100,000+ members and $19 billion in funds under management).He is now assessing his financial position and considering retiring in 5 years. UniSuper account is his main resource to support his post-retirement living,in addition to a very small amount of part pension from the government given the current legislation doesn’t change and he passes the asset test. He has approached you, an internal financial advisor at UniSuper, to get a better understanding of the risks thathe faces until he retires and in the years after retirement. Please discuss three major risks in his situation by clearly identifying each risk and explaining ameasure of such risk if it is quantifiable and/or discussing briefly if it is not quantifiable.A firm has 60,000 shares whose current price is $62.57. These shareholders expect a return of 14%. The firm has a 3-year loan of $1,900,000 at 8.3%. it has issued 22,000 bonds with a face of $1,000,20 years left to maturity, semi-annual compounding , a coupon interest rate of 8% and a current price of $925. Using the above figures for its debt and equity, what is the firm's Cost of Capital after taxes with a tax rate of 34% ?You are the manager of the Mighty Fine mutual fund. The following table reflects the activity of the fund during the last quarter. The fund started the quarter on January 1 with a balance of $100 million. Mighty Fine Mutual Pund Monthly Data (measured at end of month) February -4.3 6.20 March January 5.5 Net inflows ($ million) HPR () -4.30 1.80 Required: a. Calculate the quarterly arithmetic average return on the fund. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Arithmetic average 1.23 % b. Calculate the quarterly geometric (time-weighted) average return on the fund. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Geometric average 1.14 % c. Calculate the quarterly dollar-weighted average return on the fund. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Dollar-weighted average return
- You are in the train station waiting for your train to arrive. You see a vending machine from where youcan buy snacks and chips for $3.50. Posted on the machine is a sign saying: “Property of XYZVendsolutions Pty Ltd”. You insert the coins required into the machine and out comes a packet ofchips. However, when you open the packet of chips, you find bits of plastic inside and you don’t wantto eat the chips. You want your money back. With reference to the essential elements for the formation of a contract, explain:a) Did you enter into a contract in this scenario?words)b) If your answer is yes, with whom did you enter a contract?What impact does the market for intangible property such as stocks and bonds have on the market for real estate? Why would a real estate investor pay attention to what is happening in these markets? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $30,000 and has cash on hand of $20,000 contributed by Lanni's owners. Lanni takes out a bank loan. It receives $50,000 in cash and signs a note promising to pay back the loan over 3 years. Prepare the balance sheet just after it gets the bank loan. (Omlt the "$" slgn In your response.) a- 1. Assets Liabilities & Shareholders' Equity Cash Bank loan Computers Shareholders' equity Total Total
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- firm a issues a bond today it will pay $100,000 on the bond which includes 3% interest in one year how much will firm a recieve for the bond todayCalculate the present value of an asset that pays $225 at the end of each year for 6 years and has a face value payment of $500The following information about a company is provided: Account Contributed capital, beginning of the year Retained earnings, beginning of the year Sales revenues earned during the year Investment income earned during the year Total expenses paid during the year Dividends paid during the year Total assets, end of the year What is the total liabilities at the end of the year? S thousands 50 225 450 5 402 10 800