Problemquestion 1 on august 1 sonya sells short 100 shares, Ask an Expert

Finance

Problem:

Question 1: On August 1, Sonya sells short 100 shares of PDQ company stock for $100 per share. On October 2, Sonya closes out the short sale at a cost of $90 per share. What is Sonya's profit or (loss) on the transaction

Question 2: A company currently has $2.40 per share in free cash flows to equity (FCFE). The FCFE are anticipated to grow at 6% per year. If the investor's required return is 14%, what is the anticipated value of the firm at the end of 3 years?

Note: Be sure to show how you arrived at your answer.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91163386

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