Refer to the following pro forma financial statements for ABC Corp. At the end of 2014 you are valuing ABC Corp. and are calculating a 2018 terminal value based on a liquidation scenario. What would the terminal value be in present value (2014) terms? Assume that the resale value of PP&E is 500 and that the appropriate discount rate is 10%.

You are bearish on telecom and decide to sell short 100 shares at the current market price of $50 per share. a. how much in cash or securities must you put into your brokerage account if the broker’s initial margin requirement is 50% of the value of the short position? b. how high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position? (input the amount as a positive value. round your answer to 2 decimal places.)