The prices in part a should be interpreted as ex-dividend


Suppose that you sell short 1000 shares of Intel, currently selling for $40 per share, and give your broker $25,000 to establish your margin account.

Redo parts (a) and (b), but now assume that Intel also has paid a year-end dividend of $2 per share. The prices in part (a) should be interpreted as ex-dividend, that is, prices after the dividend has been paid. (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places. Omit the "%" & "$" signs in your response.)

(i) Rate of return %

(ii) Rate of return %

(iii) Rate of return %

Margin call will be made at price $ or higher

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Financial Management: The prices in part a should be interpreted as ex-dividend
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