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Allisa [31]
3 years ago
13

You purchased 100 shares of common stock on margin at $45 per share. Assume the initial margin is 50% and the stock pays no divi

dend. What would the maintenance margin be if a margin call is made at a stock price of $30? Ignore interest on margin. A) 0.33 B) 0.55 C) 0.43 D) 0.23 E)0.25
Business
1 answer:
Irina-Kira [14]3 years ago
7 0

Answer:

E)0.25

Explanation:

The calculation of the maintenance margin is shown below:

Maintenance margin = Number of shares purchased × price - loan amount ÷  Number of shares purchased × price

= 100 shares × $30 - $2,250 ÷ 100 shares × $30

= $3,000 - $2,250 ÷ $3,000

= $750 ÷ $3,000

= 0.25

And, the loan amount equal to  

= Number of shares purchased × per share price × initial margin

= 100 shares × $45 × 50%

= $2,250

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Carter Industries has two divisions: the West Division and the East Division. Information relating to the divisions for the year
anyanavicka [17]

Answer:

$81,000

Explanation:

Segment margin is derived by deducting all expenses that are directly traceable to the segment and it does not include corporate common expenses.

Particulars                         Amount

Contribution                       $132,000  [33,000*(8-4)]

Less: Direct fixed cost      <u>($51,000)</u>

Segment Margin               <u>$81,000</u>

So, Carter's segment margin for the West Division is $81,000.

8 0
3 years ago
Newspapers are sold daily in a wide variety of locations. This widespread distribution suggests that newspapers are classified a
KonstantinChe [14]

Answer:

True

Explanation:

Newspapers are classified as convenience goods. Convenience products are things buyers purchase regularly and effectively without placing a lot of thought into them. These incorporate papers, magazines and etc. Since buyers have a decent feeling of how a lot of these things cost, they don't consider their value except if it falls outside their desires.

6 0
3 years ago
Lorraine belongs to a national consumer panel created by a market research company. She regularly receives samples of new produc
kherson [118]

Answer:

A. premarket testing.

Explanation:

The pre market testing is when people from a certain business send products to people that are the target of that product to see if they would use it, continue to use it and how much would they be willing to pay for that product, this is done prior to the launch of the product, in order to get to know better the consumer and how they can improve their product, also to see if it is viable to start mass production and launch it into the market, so what Lorraine is doing is premarket testing.

5 0
3 years ago
Why is education considered as an investment
eimsori [14]
Education is considered as an investment in human capital. Human capital can be described as the knowledge, abilities and skills of an individual, acquired through education, training and experience, which help the latter to be more productive and thus improve his potential income earning.
7 0
2 years ago
Point Company paid $4,000 cash to purchase a new machine. The company also paid $500 cash for an initial training cost that was
spin [16.1K]

Answer:

Dr Machinery $4500

Cr Cash                      $4500

Explanation:

The reason is that the Internation Accounting Standard IAS 16 Property, Plant & Equipment says that the company must capitalized all those costs that are necessary to make the asset ready to use which means that the cost of training which is $500 and purchasing cost which is $4000 must be capitalized as part of the asset.

So the entry would be:

Dr Machinery $4500

Cr Cash                      $4500

4 0
3 years ago
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