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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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The primary measure of the economy's performance is its annual total output of goods and services, which is called its
Verizon [17]

The primary measure of the economy's performance is its annual total output of goods and services, which is called gross domestic product or GDP.

Gross Domestic Product (GDP) is the total value or market value of all goods and services produced domestically within a given period of time. It serves as a comprehensive scorecard for the economic health of a particular country as a broad measure of gross domestic product.

Gross Domestic Product (GDP) is the value of domestically produced goods and services. Gross National Product (GNP), on the other hand, is the value of all finished goods and services owned by the citizens of a country, whether or not they are manufactured in that country.

Learn more about GDP here: brainly.com/question/1383956

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6 0
2 years ago
"2016: Ending inventory was overstated by $60,000 while depreciation expense was overstated by $25,400. 2017: Ending inventory w
liberstina [14]

Answer:

$25,800 increase

Explanation:

The computation of the adjusted retained earning balance is shown below:

Ending inventory was overstated - no change

Add: Depreciation expense was overstated         $24,100

Add: Ending inventory was understated               $6,500

Less: Depreciation expense was understated     ($4,800)

Adjusted retained earning balance                     $25,800

5 0
3 years ago
Consider a firm with a 9.5% growth rate of dividends expected in the future. The current year’s dividend was $1.32. What is the
Over [174]

Answer:

Using the DDM method we can find the fair value of the stock. For that we need the current years dividend, the company's growth rate and the required rate of return on the stock.

The formula for DDM is

Value = D*(1+G)/R-G

D= 1.32

G= 9.5%

R=13%

1.32*(1+0.095)/(0.13-0.095)= 41.29

The fair present value of the company based on the dividend discount model is $41.29.

Explanation:

6 0
4 years ago
Diana wanted a German shorthaired pointer after seeing it win the Best in Show Award at the dog show. She searched on the Westmi
Nadya [2.5K]

Answer:

specialty shopping

Explanation:

Based on the scenario being described within the question it can be said that this type of shopping is referred to as specialty shopping. This refers to when an individual goes through extra special purchasing efforts in order to find and purchase a particularly unique product with the correct characteristics that the buyer wants. Which is exactly what Diana has done in order to find the dog that she wanted.

3 0
3 years ago
Magical Productions is a large production company that controls a major portion of the television industry's market share along
irina1246 [14]

Answer: Oligopolistic industry

Explanation:

 The oligopolistic industry is basically refers to the market structure where the various types of organizations or firms are dominated by the large industry or sellers.

The oligopolistic industry is one of the type of market where the large firms control and operate various types of functions in the industry.

According to the given question, the magical production is one of the type of large production company and it majorly control all the actions and portion of an organization. Therefore, Oligopolistic industry is the correct answer.

 Therefore, Oligopolistic industry is the correct answer.  

 

7 0
3 years ago
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