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3 years ago

Initial margin requirements are determined by:________

Business

1 answer:

Goryan [66]3 years ago

3 0

Answer:

b. the Federal Reserve System.

Explanation:

Initial margin refers to the deposit made by an investor with a broker, in order to open a margin account. The purpose of initial margin is security and collateral to ensure enough availability of cash in the trading account of the investor.

For instance an investor wants to purchase 4000 shares priced at 15$. In this case, he is supposed to deposit 50% of $60,000 i.e $30,000. The remaining $30,000 is contributed by the brokerage firm, regarded as borrowings on which the investor pays interest.

The initial margin limit is fixed by the Federal Reserve System.

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Historical Art is a new business. During its first year of operations, credit sales were $50,000 and collections from credit sal

Harrizon [31]

Answer:

C. 1,500

Explanation:

Credit Sales x 3%

$50,000 x 0.03 = $1,500

8 0

2 years ago

A contract provides that if a dispute arises the parties will submit to arbitration. One party files a suit against the other pa

MrRissso [65]

Answer: Submit it to arbitration.

Explanation:

The court will submit the case to arbitration making the lawsuit pending till the outcome of arbitration.

3 0

3 years ago

Sunland Company is considering two capital investment proposals. Estimates regarding each project are provided below. Project So

san4es73 [151]

Answer:

a. 4 years and 4.22 years

b. -$31,350 and $27,615

c. Project Nuts

Explanation:

a. The formula to compute the payback period is shown below:

= Initial investment ÷ Net cash flow

For project soup, it would be

= $600,000 ÷ $150,000

= 4 years

For project nuts, it would be

= $900,000 ÷ $213,000

= 4.22 years

b. The computation of the Net present value is shown below

= Present value of all yearly cash inflows after applying discount factor - initial investment

For project soup, it would be

= $568,650 - $600,000

= -$31,350

The present value is computed below:

= Annual cash flow × pvifa for 5 years at 10%

= $150,000 × 3.791

= $568,650

For project nuts, it would be

= $927,615 - $900,000

= $27,615

The present value is computed below:

= Annual cash flow × pvifa for 6 years at 10%

= $213,000 × 4.355

= $927,615

Kindly refer pvifa table

c. The project Nuts should be accepted as it has positive net present value.

7 0

2 years ago

Leona, whose marginal tax rate on ordinary income is 37 percent, owns 100 percent of the stock of Henley Corporation. This year,

riadik2000 [5.3K]

Answer: See explanation

Explanation:

First and foremost, it should be noted that there's a flat tax rate of 21% on the taxable income, therefore the after tax income will be:

= (1 - 21%) × $1 million

= 79% × $1 million

= $790,000

Therefore, the amount of the dividend payment is $790,000 which is given to Leona.

The after tax cash flow from the dividend receipt will be:

= $790,000 - (20% × $790,000)

= $790,000 - (0.2 × $790,000)

= $790,000 - $158,000

= $632,000

Therefore, the total tax by Henly and Leona will then be:

= $210,000 + $158,000

= $368,000.

This is 36.8% (368000/1 million) of the tax rate.

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2 years ago

If you were running a company, describe at least two things you would do to improve its productivity

ddd [48]

If I was running a company, I would spend more time to work on training because the more your trained, the more you can make (Quality is also better if more trained). I would give days off because my workers won’t make as much if they are tired.

8 0

3 years ago

Read 2 more answers