Answer: $1000
Explanation:
From the question, we are informed that a customer's restricted margin account shows the following: LMV $30,000 DB $16,000 SMA $0 If the customer sells $2,000 of securities.
Based on the above analysis, the customer can only withdraw $1000. This is because since $2000 worth of securities are sold, half of it which is $1000 will be credited to SMA which is the withdrawable amount.
Answer:
the conversion cost is $58,200
Explanation:
The computation of the conversion cost is shown below:
The conversion cost is
= Direct Labor + Manufacturing Overhead
= $32,800 + $25,400
= $58,200
Hence, the conversion cost is $58,200
It is the combination of the direct labor and the manfacturing overhead
Question : What is sustainable growth Rate
Answer:
Sustainable growth Rate = 1.69 %
Explanation:
Sustainable growth Rate = Return on Equity x Retention Rate
Where Return on Equity = Asset Utilization Rate x Profitability Rate x Financial Utilization Rate
Asset Utilization Rate= Total Sales/Total Assets
= 20,700/46,260 = 0.45
Profitability Rate = Net Income/ Total Assets
= 4,940/46,260 = 0.11
Financial Utilization Rate = total debt/ Total equity
= 16,780/ 29,480 = 0.57
Return on Equity = 0.45 x 0.11 x 0.57
=0.028
Retention Rate = 1- dividend pay out ratio
= 1-0.40
= 0.60
Sustainable growth Rate = 0.028 x 0.60
= 1.69 %
Answer:
$2,980.4
Explanation:
To find the answer, we use the future value of an investment formula:
FV = PV(1 + i)^n
Where:
- FV = Future value (the result we are looking for
- PV = Present value (the initial values that the question has given us)
- i = interest rat
- n = number of compounding periods
For the first $640:
FV = $640(1 + 0.0760)^1
FV = $688.6
For the $690
FV = $688.6 + $690 (1 + 0.0760)^1
FV = $1,431
For the second $690
FV = $1,431 + $690 (1 + 0.0760)^1
FV = $2,173.4
For the final $750
FV = $2,173.4 + $750 (1 + 0.0760)^1
FV = $2,980.4
So at the end of four years, you will have $2,980.4.
