Answer:
Holding period return = 4.94%
Explanation:
Given that :
Allan purchased 800 shares of stock on margin for $31
And He sold it at the rate of $33.50 after five months.
Initial Margin requirement = 65%
Maintenance Margin = 30%
Interest Rate on Margin loan = 7.5%
The Holding period return can therefore be calculated by the formula:
Holding period return = (sale price - purchase price - interest paid )/Purchase price
where ;
31 × 800 = 24800
Interest for five month = 5/12
Holding period return = (33.50-31)×800 - (7.5% ×24800× 5/12) / 24800
Holding period return = (2000-775)/24800
Holding period return = 0.0494
Holding period return = 4.94%
Answer:
Gain/loss= $1,000 loss
Explanation:
Giving the following information:
Original price= $54,000
Accumulated depreciation= $28,000
Seling price= $25,000
The gain or loss from selling an asset depends on the book value.
Book value= original price - accumulated depreciation
Book value= 54,000 - 28,000= 26,000
If the selling price is higher than the book value, the company gain from the sale.
Gain/loss= 25,000 - 26,000= $1,000 loss
Answer:
Normally "check all that apply" is followed by answers to check...
Explanation:
A W-2 is a Tax statement
B it is b because i would like it to be B please
Answer:
Month incurred Amount June July August
June 75,000 37500 18,750 18,750
July 95,000 47,500 23,750
August 95,000 47,500
37,500 66,250 90,000
The expected cash receipts are:
June = $37,500
July = $66,250
August = $90,000
Explanation:
The pattern of collection of sales is that 50% are collected in the months of sales while 25% each will be collected in the following month and following 2 months. For instance, 50% of June sales are collected in June, 25% are realized in July and 25% are collected in August. 50% of July sales are realized in July and 25% are collected in August.
