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
kipiarov [429]
3 years ago
6

You short-sell 200 shares of Tuckerton Trading Co., now selling for $50 per share. What is your maximum possible loss

Business
1 answer:
pentagon [3]3 years ago
5 0

Answer:

Unlimited

Explanation:

GIven that:

You short-sell 200 shares of Tuckerton Trading Co

now selling for $50 per share.

If a short-sell occurs on a trade, the lower the share price, the higher the profit your are liable to achieve but if short-sell occurs and the share price is higher, then the  more loss you're going to accumulate.

From the question, the lowest possible share price is zero and the highest possible share price is infinity since there is no stop loss.

∴

The maximum possible loss = 200 × 50( 1 - infinity share price)

= Unlimited loss

You might be interested in
Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return o
alekssr [168]

The profitability index decision rule of the project equals 2.45 year and thus, the project should be accept to be embarked on.

<h3>What is a profitability index?</h3>

The rule refers to a decision-making exercise that helps to evaluate whether to proceed with a project based on its profitability.

Hence, because the profitability index decision rule of the project equals 2.45 year and thus, the project should be accept to be embarked on.

Read more about profitability index

<em>brainly.com/question/18089407</em>

#SPJ1

4 0
2 years ago
Which of the following will probably earn a higher level income?
aleksley [76]

In my opinion D. a female accountant with a masters degree in business administration, will earn a higher level of income. <em>Explanation- if she has a masters then they may accept her in jobs other people are not able to get without a masters, they may also pay her higher because of it.</em>


<h3>Hope this will help- for more help follow me, or contact me</h3>
7 0
3 years ago
Read 2 more answers
Sinking fund bonds: Multiple Choice Require equal payments of both principal and interest over the life of the bond issue. Requi
alexandr1967 [171]

Require the issuer to set aside assets to pay bonds at maturity.

Bonds that require the issuer to set aside a pool of assets used only to repay the bonds at maturity.

<h3>What is Sinking Fund Bond ?</h3>

A sinking fund is maintained by companies for bond issues, and is money set aside or saved to pay off a debt or bond.

  • Bonds issued with sinking funds are lower risk since they are backed by the collateral in the fund, and therefore carry lower yields.

  • example may be a company issuing $1 million of bonds that are to mature in 10 years. Given this, it creates a sinking fund and deposits $100,000 yearly to make sure that the bonds are all bought back by their maturity date

Learn more about Sinking Fund Bond here:

brainly.com/question/26678695

#SPJ4

8 0
2 years ago
This monetary policy________the economy's demand for goods and services, leading to_________product prices. In the short run, th
madreJ [45]

Answer:

<u>Increases,.. higher... more.. low.. lower</u>

Explanation:

This monetary policy acts as economic stimulant by increasing the supply of money in the economy, with increased supply come an increase in the economy's demand for goods and services, leading to higher product prices.

Also, In the short run, this <em>positive change</em> in prices induces firms to produce more goods and services.

This, in turn, leads to<u> a low level of unemployment because companies increase their demand for more labour to meet their demand.</u>

In other words, the economy faces a trade-off between inflation and unemployment: Higher inflation leads to lower unemployment.

7 0
3 years ago
Consider a mutual fund with $300 million in assets at the start of the year and 10 million shares outstanding. The fund invests
djyliett [7]

Answer: Start = $300 million

End = $318.59 million

Explanation:

NAV can be calculated by dividing the funds Assets net of Liabilities by the total number of outstanding shares.

At start of the year NAV is $300 million and NAV per share is therefore,

= 300 million/ 10 million

= $30 per share.

Ending NAV

During the year the fund made Investments and increased by a price of 7%

= 300 million (1 + 0.07)

= $321 million

We still have to subtract the 12b-1 fees that the fund charges though and that would result in,

= 321 million * (1 - 0.0075)

= 318.5925

= $318.59 million.

Dividing this by the total number of outstanding shares we have,

= 318.59 /10

= $31.86

$31.86 is the NAV per share at year end.

5 0
3 years ago
Other questions:
  • Miguel, Inc. reported net income of $2.5 million in 2022. Depreciation for the year was $160,000, accounts receivable decreased
    11·1 answer
  • How to find out how much your social security will be?
    13·1 answer
  • On January 1, Boston Enterprises issues bonds that have a $2,200,000 par value, mature in 20 years, and pay 9% interest semiannu
    6·1 answer
  • Aaron works as a marketing associate for Media Cloud Inc. He is currently working on an important project with a tight deadline.
    7·1 answer
  • g "9. (a) Explain how financial ratio analysis of a firm’s projected cash flow budget could be efficiently used by its managers
    13·1 answer
  • Joey’s parents told him that for every 3 hours of chores he completes, they would give him $11 for his allowance. His friend Sar
    11·1 answer
  • On January 1, 20X2, X Company made modifications to an asset used in its manufacturing operations in order to extend its useful
    10·1 answer
  • What techniques should you employ when
    12·1 answer
  • Please help me with this question.
    8·1 answer
  • How do you find the total fixed cost using the table
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!