You sell a stock short for . A year later, you buy it back at . The stock pays annual dividends of .
The margin requirement is % and the interest on the margin requirement is %. Calculate the yield rate on the short sale Practice Problem
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The following practice problem has been generated for you:
You sell a stock short for 1022. A year later, you buy it back at 767. The stock pays annual dividends of 62. The margin requirement is 44% and the interest on the margin requirement is 4%. Calculate the yield rate on the short sale: