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FinanceQ&A LibraryYou sold short 100 shares of Kraft Heinz Co. common stock on margin at $83.55 per share.Assume the initial margin is 50% and the maintenance margin is 30%.One year later, the stock price closes at $59.61, and it has paid cash dividends of $2.50 per share.What is your return on equity? Ignore margin interest.Start your trial now! First week only $4.99!*arrow_forward*

Question

You sold short 100 shares of Kraft Heinz Co. common stock on margin at $83.55 per share.

Assume the initial margin is 50% and the maintenance margin is 30%.

One year later, the stock price closes at $59.61, and it has paid cash dividends of $2.50 per share.

What is your return on equity? Ignore margin interest.

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