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lions [1.4K]
2 years ago
11

An investor sold 100 shares of ran common stock short at $50 per share. the ran is now at $38. the investor is still bearish on

the stock but would like to protect that gain. what would you recommend if this were your client
Business
1 answer:
Anni [7]2 years ago
7 0

If the investor is my client, i will advise him to enter a buy stop order at $40.

<h3>What is the buy stop order?</h3>

In the share market, these are protective tool that are mainly for short sellers.

Now, as the stock should begin to rise from its current price of $38, once it reaches or exceeds $40, a buy order at the market is entered.

Hence, the stock purchased is used to cover the short position and the investor's profit is the $50 sale price minus the cost of the purchase.

However, because the investor is short term person, the only protective order would be a buy and not a sell.

Therefore, i will advise him to enter a buy stop order at $40

Read more about buy stop order

<em>brainly.com/question/14206094</em>

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Swifty Corporation incurs the following costs to produce 9900 units of a subcomponent:
MrMuchimi

Answer:

The net income will increase by $6,712 if the subcomponent is purchased.

Explanation:

Giving the following information:

Swifty Corporation incurs the following costs to produce 9900 units of a subcomponent:

Direct materials $8316

Direct labor 11187

Variable overhead 12474

Fixed overhead 16200

Total cost= $48,177

An outside supplier has offered to sell Swifty the subcomponent for $2.85 a unit.

Swifty could avoid $3000 of fixed overhead by accepting the offer.

We need to calculate the total cost of buying the subcomponent:

Buy:

Total cost= 9,900*2.85 + (16,200 - 3,000)= $41,415

The net income will increase by $6,712 if the subcomponent is purchased.

8 0
3 years ago
The town of Harmonia gives away all 500 tickets to its annual​ Founder's Day Free ConcertminusinminustheminusPark to local resid
Novosadov [1.4K]
sold 500 tickets therefore it is not economically efficient
4 0
3 years ago
Suppose that production for good X is characterized by the following production function, Q = K0.5L0.5, where K is the fixed inp
Ad libitum [116K]

Answer:

B). $12

Explanation:

As per the given data, the AFC(Average Fixed Cost) for employing 25 factors of labor and 16 factors of capital would be $12.

We are given the production function,

Q = K^{0.5} L^{0.5}

where,

K = allotted input in short-term

Rental rate of each unit/factor(r) = $15

Wage per factor(w) = $5

As we know, the two inputs are labor, as well as, capital;

To find AFC, we need TC;

so,

TC = (Fixed cost + Variable cost)

TC = (240(15 * 16) + 125(25 * 5) = 365

Thus,

AFC = $ 12

8 0
3 years ago
The Oviedo Company is considering the purchase of a new machine to replace an obsolete one. The machine being used for the opera
Elza [17]

Answer:

Yes it should as the net present value at the firm WACC is positive $ 4,156.54

Explanation:

we are given with the after-tax cost for the machine and after-tax cost of the labor cost savings the new machine will provide

So we should check if the present value of the savings is greater or equal than the machine cost:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\  

C $ 8,000

time 10 years

rate=WACC= 0.1

8000 \times \frac{1-(1+0.1)^{-10} }{0.1} = PV\\  

PV $49,156.5368  

Net present value:

inflow - cost

49,156.54 - 45,000 = 4,156.54

6 0
3 years ago
Donovan and Keith both work as line employees at the Widget Corporation plant. They are both big fans of the San Francisco Forty
Bezzdna [24]

Answer:

Social companionship

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Social companionship is a type of friendship or relationship between individuals who share similar likes and benefit from each other as they feel a sense of closeness doing things they like together. Donovan and Keith, who share some similarities and likes between each other, provide social companionship to each other as they hang out together as fans of a club.

6 0
3 years ago
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