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Juli2301 [7.4K]
4 years ago
12

"As the initial transaction in a new margin account, a customer buys 1,000 shares of XYZ stock at $30. The market value increase

s to $50. Which statements are TRUE?"
Business
1 answer:
Andrei [34K]4 years ago
5 0

Answer:

II and IV

In a long margin account for every $1 rise in market value, equity will increase by $1. Since initial margin is set at 50%, for every $1 rise in market value, SMA increases by $.50 (that is, 50% of the market value increase can be borrowed). This account's equity went up $20,000; so the SMA would go up by 1/2 that amount, or by $10,000.

Explanation:

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Donald Martin is 30 years and wants to retire when he is 65. So far he has saved (1) $6,450 in an IRA account in which his money
shepuryov [24]

Answer:

Annual deposit= $4,169.59754

Explanation:

Giving the following information:

Donald Martin is 30 years and wants to retire when he is 65.

PV= 6,450 + 4,300= $10,750

i= 0.0854

Number of years= 35

First, we need to calculate the final value of the initial investment:

FV= PV*(1+i)^n

FV= 10,750*(1.0854^35)

FV= 189,257.05

Now, we can calculate the annual deposit required. We need to use the following formula:

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

A= annual deposit

Isolating A:

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

FV= 1,000,000 - 189,257.05= 810,742.95

A= (810,742.95*0.0854) / [(1.0854^35)-1]

A= $4,169.59754

5 0
4 years ago
Diversification may dissipate value if it is wrongly based on: a. transferring competencies. b. realizing economies of scope. c.
Bezzdna [24]

Answer:

C. rescuing core business.

Explanation:

Diversification: It is a process of expanding the business by allocating investment in several other related businesses. This is a way to reduce risk on any particular asset or business and it also helps in covering the loss of one business. A company should pursue related diversification instead of unrelated diversification when the company's core skills are highly specialized and have few applications outside its core business.

7 0
3 years ago
If an individual moves money from a savings deposit account to a money market deposit account,
IceJOKER [234]

Answer:

The answer is: A) M1 stays the same and M2 stays the same

Explanation:

Total money supply is divided into:

  1. M1 includes all coins and bills in circulation plus traveler's checks and checking account deposits.
  2. M2 includes M1 plus savings accounts, short term deposits and money market accounts.
  3. M3 includes M2 plus long term bank deposits and institutional money market funds.
8 0
3 years ago
QUESTION 7 of 10: Which is NOT a use for market research?
olasank [31]

Answer:

The answer would be b, determining tax deductions

Explanation:

All three of the other points are ways you can find out customers needs and wants, however tax deduction is used to figure out how much tax is owed.

5 0
3 years ago
A firm has a _____ when its goods are made more valuable in the presence of those of another firm
blagie [28]

Answer:

The correct word for the blank space is: complement.

Explanation:

A good or service that is used in conjunction with another good or service is a complement. Companies and economists study complementary goods to understand consumer decisions and buying patterns. Complementary goods have little to no value when they are consumed alone but when combined with another good or service both benefit through added value.

7 0
4 years ago
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