What section of your resume includes your GPA?

Shares of RossCorp stock are selling for $45 per share. Brokerage commissions are 2% for purchases and 2% for sales. The interes

maksim [4K]

Answer:

The price at which a margin call would be received is $28.929.

Explanation:

The stated question does not contain complete information. The remaining information is as follows.

Assume that you purchase 150 shares of RossCorp stock at $45 each by making a margin deposit of 55 percent. At what price would you receive a margin call?

The price is calculated using the formula for maintenance margin as follows.

Maintenance margin = Equity in account / Value of stock

Equity in account = (Shares purchased x Call price) - (Shares purchased x Remaining ratio x Sale price)

Equity in account = (150 x P) - (150 x 0.45 x 45)

= 150P - 3037.5

Value of stock = Shares purchased x Call price

= 150P

Inserting these values into the formula for maintenance margin:

0.3 = (150P - 3037.5) / 150P

45P = 150P - 3037.5

105P = 3037.5

P = 28.929

Hence, the price at which a margin call would be received is $28.929.

6 0

3 years ago

In one statistics course, students reported studying an average of 9.92 hours a week, with a standard deviation of 4.54. jessica

marta [7]

Given:
μ = 9.9 hours, population mean
σ = 4.54 hours, population standard deviation

For the random variable x = 3 hours, the z-score is
z = (3 - 9.92)/4.54 = -1.5242

From standard tables, obtain
P(x ≤ 3) = 0.064 = 6.4%

Answer: 6.4% on both tails of the normal distribution

3 0

3 years ago

A firm improves product quality and adds new product features and models. it also shifts some advertising from building product

marin [14]

The product life cycle (PLC) has 5 stages: product development stage, introduction stage, growth stage, maturity stage and decline stage.
The strategy that includes shifting some advertising from building product awareness to building product conviction and purchase is part of the growth stage of the product life cycle. If the new product satisfies the market, it enters this growth stage. In the growth stage the sales will start climbing quickly.

6 0

3 years ago

Read 2 more answers

Which of the following statements is true?-direct costs can easily be traced to a cost object; indirect costs cannot be-both dir

Andru [333]

Answer: Statement A

Explanation: Direct cost are those costs which are variable in nature and can be allocated to the total units of output produced, these are easily traceable. Examples - direct material, direct labor and piece rate wages etc.

Indirect costs are those cost which cannot be allocated to the number of units produced on individual basis unlike direct cost these costs can be either fixed or variable in nature. Examples - rent expenses, administrative expenses.

.

From the above explanation we can conclude that statement A is correct.

5 0

3 years ago

As in the previous Participation Exercise, the Khalid Company manufactures and sells Paso-the-Salsa, which is a bottled condimen

Ad libitum [116K]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Each bottle is sold for $5. The company recently had the following costs to produce 12,000 units of its product during August:

(1) Rent of $5,000 on a billboard to help advertise the product

(2) Rent on factory and equipment of $8,000

(3) Total payroll for hourly-paid, factory workers $24,000

(4) Tomatoes, onions, spices, and bottles $18,000

(5) Total payroll for salaried, administrative staff $6,000

The company sold 8,000 units.

A) First, we need to calculate the total and unitary cost of production:

Total cost= direct material + direct labor + factory overhead

Total cost= tomatoes, onions, spices, and bottles + Total payroll for hourly-paid, factory workers + Rent on factory and equipment

Total cost= 18,000 + 24,000 + 8,000

TC= 50,000

Unitary cost= 50,000/12,000= $4.17 per bottle

Now, we can calculate the cost of goods sold:

COGS= unitary cost* units sold= 4.17*8,000= $33,360

B) Income statement:

Sales= 8,000*5= 40,000

COGS= (33,360)

Gross profit= 6,640

Selling expense= (5,000)

Administrative expense= (6,000)

Net operating income= (4,360)

C) Inventory= unitary cost* ending inventory in units

Inventory= 4.17*4,000= $16,680

4 0

3 years ago