Well according to my calculations and 20+ yrs of experience in business your answer should be 15,000
Answer:
b. Call for $1,500
Explanation:
According to the scenario, computation of the given data are as follow:-
We can calculate the amount of margin call by using following formula:-
Loss of today = future contracts based total bushels × total contract × (settlement cost per bushels - future contract price per bushels)
= 5,000 cents × 6 × (390 cents - 385 cents)
= 5,000 cents × 6 × 5 cents
= 150,000 cents
And we know that
100 cents = 1 dollar
so,
150,000 cents ÷ 100 =$1,500
Initial margin $878 per future contract and maintenance margin $650 per contract, Margins of both are less than loss .So we have to pay $1,500 in initial margin.
According to the analysis, we will receive $1,500 margin call.
Therefore option (B) call for $1,500 is correct.
Answer:
165,000 pounds ($495,000)
Explanation:
To determine the budgeted purchases of material A in pounds for the second quarter, prepare a Materials Purchases Budget as follows :
<u>Materials Purchases Budget</u>
Pounds
Materials Required for Production (80,000 x 2) 160,000
Add Closing Materials Inventory (90,000 x 2 x 25%) 45,000
Total Materials 205,000
Less Opening Materials Inventory (80,000 x 2 x 25%) (40,000)
Material Purchases 165,000
Cost per unit $3
Budgeted Materials Cost $495,000
Answer:
c. A new technology such as the Internet has just been introduced, and it increases investment opportunities.
Explanation:
Nominal interest rate is the sum of real interest rate and expected inflation rate.
If expected inflation rate falls, the nominal interest rate also falls.
During a recession, people are more unwilling to borrow funds ,this pushes interest rate down.
If investment opportunities increases, the demand for funds would increase and nominal interest rate would increase too.
I hope my answer helps you
Answer:
weighted average rate: 11.14%
capitalize interest (avoidable interest) 421,270.24 dollars
Explanation:
construction related loan:
4,400,000 12% = 528,000
general use:
3,080,000 10% = 308,000
<u>2,200,000</u> 11% = <u> 242,000</u>
9,680,000 1,078,000
weighted-average rate: 1,078,000 / 9,680,000 = 0.111363636 = 11.14%
capitalize interest:
weighted-average amount of accumulated expenditures x w/a rate:
3,781,600 x 11.14% = 421,270.24
