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Rate of return on investment

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You decide to sell short 100 shares of Charlote Horse FArms when it selling at its yearly high of P56.Your brokers tell you that your margin requirement is 45% and the commission on the purchased of P155. While you are the short the stock, Charlotte pays P2.50 per share dividend. AT the end of one year, you buy 100 shares of Charlotte at P45 to close out your position and charged a commission of P145 and 8% interest on the money borrowed. What is your rate of return on Investment?

Reference no: EM131152777

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