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lilavasa [31]
3 years ago
6

Arianna just made another fantastic​ investment: She purchased 400 shares in Great Gains Corporation for ​$20.0920.09 per share.

Yesterday the stock closed at ​$54.1254.12 per share. In order to lock in her​ gains, she has decided to employ a​ stop-loss order. Assuming she set the order at ​$53.7353.73​, what is likely to​ happen? Why might this not be a wise​ decision? At what price would you recommend setting the​ stop-loss order?​ Why?
Business
1 answer:
Gwar [14]3 years ago
8 0

<u><em>Answer:</em></u>

<u><em>1. Likely the price of the stock either goes up or falls</em></u>

<u><em>2. There is no need for a stop loss order in this scenario.</em></u>

<u><em>3. 5412541.2</em></u>

<u>Explanation</u>:

1. Stock market prices are often  unstable, prices can be up today, the next day they are low.

2. Arianna has already made over 100% profit from the stock since she purchased at a good low price, yesterday's stock close price was still profit for her.

3. A 10% Stop loss price would have been the idea order price rather than the ​$53.7353.73​.

4. Remember Stop loss order are meant to reduce or minimize the loss of investor or trader, a <em>calculated level </em>of  should be carefully decided.

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The managers at Fazer Technologies Inc. prepared a report on the profits earned and the losses incurred by the company over the
HACTEHA [7]

Answer:

<u>external report</u>

Explanation:

Note that, the manager prepared a report which he later presented to the stockholders of the company; meaning he gave the report to an outside party.

Remember, external reports are usually given to investors to know the financial condition of the company. Thus, the shareholders would need the report in order evaluate the financial condition of Fazer Technologies Inc.

3 0
3 years ago
Simplifying the ABC System: TDABC Golding Bank provided the following data about its resources and activities for its checking a
IRISSAK [1]

Answer:

1.$20 per hour

2. Processing accounts $4 per account

Issuing statements $2 per statement

Processing transactions $1 per transaction

Answering inquiries $3 per inquiry

$40,000

Explanation:

1. Calculation to determine the capacity cost rate for the checking account process

Using this formula

Capacity cost rate= Total resources / Total checking processing hours

Let plug in the formula

Capacity cost rate= $400,000 / 20,000

Capacity cost rate= $20 per hour

Therefore the capacity cost rate for the checking account process is $20 per hour

2. Calculation to determine the activity rates for the four activities.

Processing accounts= 0.20 × $20

Processing accounts= $4 per account

Issuing statements= 0.10 × $20

Issuing statements= $2 per statement

Processing transactions= 0.05 × $20

Processing transactions= $1 per transaction

Answering inquiries= 0.15 × $20

Answering inquiries= $3 per inquiry

Therefore the activity rates for the four activities are:

Processing accounts $4 per account

Issuing statements $2 per statement

Processing transactions $1 per transaction

Answering inquiries $3 per inquiry

Calculation to determine the cost of the issuing statements activity If the total of issuing statement was 20,000

Using this formula

Cost of the issuing statements activity= Issuing statements*Total of issuing statement

Cost of the issuing statements activity

Let plug in the formula

Cost of the issuing statements activity= 20,000 × $2

Cost of the issuing statements activity= $40,000

Therefore the cost of the issuing statements activity is $40,000

7 0
3 years ago
Bottum Corporation, a manufacturing Corporation, has provided data concerning its operations for May. The beginning balance in t
Alisiya [41]

Answer:

$48,200

Explanation:

The computation of the direct material cost for the month of May is shown below:

Direct materials cost = Beginning raw materials inventory + purchases made  - Ending balance of raw materials - Indirect materials

= $24,000 + $71,000 - $44,000 - $2,800

= $48,200

Hence, the direct material cost for the month of May is $48,200

3 0
2 years ago
Caroline is training for a triathlon, a timed race that combines swimming, biking, and running.
zalisa [80]

Answer:

Each hour she spends swimming is an hour that she can't spend biking or running. The basic principle this sentence illustrates is:

All choices have opportunity cost.

Explanation:

As per the given situation, Caroline decides to go for swimming. So the time she invests in swimming, she could have done for biking or running during that time. So, opportunity cost of one hour of swimming is an hour of biking or running. Also it is not known that whether Caroline has an incentive if she spends more time swimming. This applies for an hour spent for biking or running as well. Thus, all the three choices have an opportunity cost.

6 0
3 years ago
How many years will it take for an investment to increase by 3 times at an interest rate of 9% g
Alex_Xolod [135]

Answer:

The Rule of 72 is a quick, useful formula that is popularly used to estimate the number of years required to double the invested money at a given annual rate of return. Alternatively, it can compute the annual rate of compounded return from an investment given how many years it will take to double the investment.

While calculators and spreadsheet programs like Microsoft Excel have functions to accurately calculate the precise time required to double the invested money, the Rule of 72 comes in handy for mental calculations to quickly gauge an approximate value. For this reason, the Rule of 72 is often taught to beginning investors as it is easy to comprehend and calculate. The Security and Exchange Commission also cites the Rule of 72 in grade-level financial literacy resources.

1

KEY TAKEAWAYS

The Rule of 72 is a simplified formula that calculates how long it'll take for an investment to double in value, based on its rate of return.

The Rule of 72 applies to compounded interest rates and is reasonably accurate for interest rates that fall in the range of 6% and 10%.

The Rule of 72 can be applied to anything that increases exponentially, such as GDP or inflation; it can also indicate the long-term effect of annual fees on an investment's growth.

This estimation tool can also be used to estimate the rate of return needed for an investment to double given an investment period.

For different situations, it's often better to use the Rule of 69, Rule of 70, or Rule of 73.

Rule of 72

The Formula for the Rule of 72

The Rule of 72 can be leveraged in two different ways to determine an expected doubling period or required rate of return.

Years To Double: 72 / Expected Rate of Return

To calculate the time period an investment will double, divide the integer 72 by the expected rate of return. The formula relies on a single average rate over the life of the investment. The findings hold true for fractional results, as all decimals represent an additional portion of a year.

Expected Rate of Return: 72 / Years To Double

To calculate the expected rate of interest, divide the integer 72 by the number of years required to double your investment. The number of years does not need to be a whole number; the formula can handle fractions or portions of a year. In addition, the resulting expected rate of return assumes compounding interest at that rate over the entire holding period of an investment.

The Rule of 72 applies to cases of compound interest, not simple interest. Simple interest is determined by multiplying the daily interest rate by the principal amount and by the number of days that elapse between payments. Compound interest is calculated on both the initial principal and the accumulated interest of previous periods of a deposit.

How to Use the Rule of 72

The Rule of 72 could apply to anything that grows at a compounded rate, such as population, macroeconomic numbers, charges, or loans. If the gross domestic product (GDP) grows at 4% annually, the economy will be expected to double in 72 / 4% = 18 years.

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