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Rama09 [41]
3 years ago
13

A customer opens a margin account by purchasing 100 shares of ABC at $60 per share, depositing the 50% Regulation T requirement.

The stock rises to $80 per share on the next day and then falls to $60 per share on the day after. The account will now show:
Business
1 answer:
Scilla [17]3 years ago
5 0

Answer:

Account Balance in margin account:

Investment = $6,000 (100 x $60)

The customer's account will first increase with an unrealized gain of $2,000 ($80 - 60 x 100) on the next day.  It will then decrease with an unrealized loss of $2,000 ($80 - 60 x 100) on the day after.  This cancels the earlier unrealized gain.

Explanation:

The customer's investment will now show a balance of $6,000 with a contra account showing a debt of $3,000 for the balance of the Regulation T margin account.  According to investopedia, "A margin account is a brokerage account in which the broker lends the customer cash to purchase stocks or other financial products.  The loan in the account is collateralized by the securities purchased and cash, and comes with a periodic interest rate."

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Judith George makes an offer to sell a plot of land using a normal letter and states no authorized means by which the offeree,He
leonid [27]

Answer:

A) The acceptance is effective upon dispatch

Explanation:

In the given scenario an offer was made by Judith using normal letter, she did not state the authorised means by which the acceptance should be made.

If Helga accepts the offer and chooses and means to convey the acceptance, it will be acceptable as there is no specific way stated by Judith.

So when Helga responds by using a normal letter, the acceptance is effective when she dispatches the letter.

If however Judith stated an authorised means of acceptance, Helga would have to comply to make sure her acceptance is valid

8 0
3 years ago
Xavier is a manager at BuiltMore Industries, and is responsible for several controlling activities. Which of the following activ
Eduardwww [97]

Answer:

B.

Explanation:

Based on the answers provided within the question it can be said that I would expect Xavier to participate in Evaluating why the assembly line is making only 14 dozen boxes of cake mix each hour rather than the expected 18 dozen boxes. This is mainly because evaluating why the assembly line is not producing as efficiently as it should and implementing the necessary changes is all part of controlling activities which Xavier is responsible for as a manager at BuiltMore Industries.

6 0
4 years ago
Morris Industries would like to purchase some new equipment costing $1.56 million. This purchase is scheduled for 3 years from t
Levart [38]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Final value= 1,560,000

n= 3*12= 36 months

i= 0.038/12= 0.0031667

To calculate the annual deposit needed we need to use the following version of the final value formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A=(1,560,000*0.0031667) / [(1.0031667^36)-1]=  $40,849

7 0
3 years ago
Which factor is a component of verbal communication? appearance tone of voice pronunciation proximity to the person to whom you
Art [367]
Please explain the question a little more, or what the answer are to pick from.
4 0
3 years ago
The cost of renting tuxes for the Choral Society’s formal is $20 down plus $88 per tux. Express the cost ???? as a function of x
Nezavi [6.7K]

Answer:

a. $196

b. $88

c. $88

d. $88(x)

e. $20

f. $88

Explanation:

Given:

Rent = $20

Cost per Tux = $88

x = Number of tux

  • Since $20 is rent regardless , how many tuxes we rent

Cost function C(x) = 88(x) + 20

A. Cost of renting two tuxes

C(2) = $88(2) + $20

       = $176 + $20

       = $196

B. All tuxes has same cost, so cost of second tux = $88

C. All tuxes has same cost, so cost of tenth tux = $88

D. Here variable cost means value of tuxes , so variable cost = $88(x)

E. Here rent is described as fixed cost = $20

F. Marginal cost =  change in cost / change in quantity

                          =  ${(2*88) -(1*88)} / 2-1

                          =  $88

5 0
3 years ago
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