Determining the percentage return on position


A speculator sells a stock short for $50 a share. The company pays a $2 annual cash dividend. After a year has passed, the seller covers the short position at $42. What is the percentage return on the position (excluding the impact of any interest expense and commissions)? See the Point of Interest titled "The Short Sale and Dividends)

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Finance Basics: Determining the percentage return on position
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