1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
topjm [15]
3 years ago
5

Suppose that Xtel currently is selling at $66 per share. You buy 500 shares using $20,000 of your own money, borrowing the remai

nder of the purchase price from your broker. The rate on the margin loan is 6%. a. What is the percentage increase in the net worth of your brokerage account if the price of Xtel immediately changes to: (i) $69.63; (ii) $66; (iii) $62.37? What is the relationship between your percentage return and the percentage change in the price of Xtel?
Business
1 answer:
hram777 [196]3 years ago
8 0

Answer:

The percentage loss will be "-9.08%". The further explanation is given below.

Explanation:

The given values are:

Invested amount

= 20,000

Price of purchase

= $66

Total number of shares

= 500

The borrowed amount will be:

= (500\times 66)-20000

= 13,000

When the price increase to 69.63, the gain will be:

= 69.63-66

= 3.63 ($)

The total gain will be:

= 3.63\times 500

= 1815

Increase in percentage will be:

= \frac{1815}{20,000}\times 100

= 9.08%

Whereas if price stays quite well at $66, there is really no increase, so the percentage growth would be 0%.  

If the price declines toward a loss of 62,37 per share:

= 62.37-66

= -3.63

Now,

The total loss will be:

= -3.63\times 500

= -1815

The percentage loss will be:

= \frac{-1815}{15,000}

= -9.08 (%)

You might be interested in
By the time you turn 30 years old, what insurance do you expect to have?
WINSTONCH [101]

honestly you would need all of them because they are very important to have as you get older

5 0
2 years ago
Read 2 more answers
Wild Plus, a television channel dedicated to wildlife, wanted to promote its new wildlife adventure series. The series received
MA_775_DIABLO [31]

Answer:

D. public relations

Explanation:

Public relations refers to the different approaches a company uses to disseminate information about its products and services to its customers and other stakeholders. Public relations involves crafting unique and catchy communication and using the media to and other mediums to create and sustain a strong brand image to the target audience.

An organization does not pay for public relations messages. It engages or participates in publicized events.  The media and medium attending the events pick and publish positive messages about the organization.

Public relations is all bout creating a good reputation in society. Organizations engage in charitable works or sponsors events as public relations events.

4 0
3 years ago
A company pays each of its two office employees each Friday at the rate of $210 per day for a five-day week that begins on Monda
marusya05 [52]

Answer:

Correct answer is:

Debit Salaries Expense $840

Credit Salaries Payable $840

Explanation:

2 employees each paid at $ 210 per day so daily salary expense is $210*2 = $420.

The accounting period ends on Tuesday and both employees work for Monday and Tuesday so the 2 days salaries expense is $420*2= $840.

As the salaries are paid on every Friday so there is a liability on a company for the 2 days salary payable to be recorded on accounting period close date i.e Tuesday.

4 0
2 years ago
Read 2 more answers
At magnira corp., a company that manufactures fruit preserves, fruits of excellent quality are used to make jams, jellies, and m
Juli2301 [7.4K]
<span>In the example of the Magnira Corporation, the fruits are turned into jellies, jams, and marmalades an example of raw materials. Raw materials are basic, unprocessed materials that are used to manufacture goods. Raw materials are often referred to as commodities.</span>
3 0
2 years ago
Read 2 more answers
Which of the following integrates the functions of operations management, logistics management, procurement, and marketing chann
IRINA_888 [86]

Answer:

Supply Chain Management

7 0
3 years ago
Other questions:
  • Argon Chemicals had a total overhead amount of $47,200 during the month of June. Of that total, 58% was related to the factory,
    11·1 answer
  • Money is always based on a precious metal like gold or silver. anything that is generally accepted in payment for goods and serv
    12·1 answer
  • ​Aidan, Bianca, Caitlyn and Dmitri want jobs as management consultants. XY Corporation is a management consulting firm in a perf
    14·1 answer
  • A baseball fan with a Mike Trout baseball card wants to trade it for a Giancarlo Stanton baseball​ card, but everyone the fan kn
    5·1 answer
  • Brian, Kirk, and Jim established a partnership with equal capital contributions. However, Kirk provided an additional contributi
    8·1 answer
  • 4. What does In-Private (or Incognito) browsing do?
    11·2 answers
  • True/False <br> The criminal justice system is a static entity and does not change?
    7·2 answers
  • Gabriele Enterprises has bonds on the market making annual payments, with twelve years to maturity, a par value of $1,000, and s
    12·1 answer
  • What is accounting ?​
    10·1 answer
  • What aspects and areas of the dental office should be assessed?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!