Answer:
c. IBM issues 2,000,000 shares of new stock and sells them to the public through an investment banker
Explanation:
The primary market is the market when for the first time the new securities such as shares, stocks, etc. are being provided to the general public or we can refer initial public offer. The initial public offer is an illustration of the primary market
Whereas the secondary market is the market where the shares are bought or sold through the investors after they are provided to the general public.
For examples-New York Stock Exchange (NYSE), etc.
<em>catalyst is not a reactant it just speeds up the chemical reaction but does not convert into the end product.</em>
Answer:
$930.89
Explanation:
The Notional value of position = Price of S&P-500 index future x Contract multiplier x no. of contracts
= 950x250x10
=$2,375,000
Margin = Total nominal value of position x Initial margin
=2375,000x10%
=$237,500
b) Maintenance margin = Initial margin x Maintenance margin
=237500 x 80%
=$190,000
Margin call will be receive when value of the Initial margin falls below maintenance margin
Thus 237500e^0.06/52 + (St -950) x250 x10 <190,000
From here St = price at which margin call will be made
=237500e^0.0011538 + (St -950) x 2500 <190,000
=237500(1.0011538) + (St -950) x 2500 <190,000
=237774.04 + (2500St - 2375000) < 190,000
=2500St - 2137226 <190,000
= 2500St <2327226
St < 930.89
Thus price below $930.89 will be called maintenance margin.
Answer:
$855,000
Explanation:
The computation of the operating income is shown below:
Operating income at 115,000 units is
= (Selling price per unit - variable cost per unit) × sales volume - fixed cost
= ($16 - $8) × 115,000 - 65,000
= $855,000
Hence, the operating income at 115,000 units is $855,000
All other things are irrelevant. Hence, ignored it
The Global Capsule in Chapter 5 says perhaps the best variable to monitor and to use to decide where to begin doing business is Gross domestic product
Answer: Option (A) is correct
<u>Explanation:</u>
GDP is the Gross domestic product. It depicts how vast the economy is. GDP is the value of all finished goods and services in monetary terms. It tells the extent of activity undertaken in a country.
The foremost factor to decide where to start the business is to see the size of the market in that particular nation. To determine the size of a market or a business activity GDP plays a very important role.
