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USPshnik [31]
3 years ago
10

Assume you purchased 700 shares of XYZ common stock on margin at $40 per share from your broker. If the initial margin is 65%, t

he amount you borrowed from the broker is _________.
a. $18,200

b.$28,000

c.$37,800

d.$9,800
Business
1 answer:
s2008m [1.1K]3 years ago
6 0

Answer:

Option D is correct ($9,800)

Explanation:

Option D is correct ($9,800)

Given:

Shares Purchased of XYZ common stock= 700 shares

Margin at which shares are purchased= $40

Initial Margin= 65%

Required:

Amount you borrowed from the broker=?

Solution:

Amount you borrowed from the broker= Shares*Margin at which shares are purchased* (1-Initial Margin)

Amount you borrowed from the broker= 700*$40*(1-0.65)

Amount you borrowed from the broker= $9,800

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Ponzi Products produced 100 chain-letter kits this quarter, resulting in a total cash outlay of $10 per unit. It will sell 50 of
goldenfox [79]

Answer:

a) Ponzi Products

Income statement

For quarters 1, 2, 3 and 4 of year 202x

                                       Q1                     Q2                  Q3                Q4

Sales revenue                $0                   $550             $600              $0

COGS                              $0                   $500             $500              $0

Operating income          $0                    $50               $100              $0

Since no products are sold during the first and fourth quarter, their respective revenues, COGS and operating income is $0.

b) Ponzi Products

Schedule of Expected Cash Receipts

For quarters 1, 2, 3 and 4 of year 202x

                                       Q1                     Q2                  Q3                Q4

Sales revenue                $0                    $0                $550            $600

Cost of goods man.  ($1,000)                $0                   $0               $0

Net cash receipts     ($1,000)                 $0                $550            $600

c) This question is incomplete, it should say what is Ponzi's net working capital for each quarter?

NWC = current assets - current liabilities

NWC Q1 = $1,000 (Merchandise inventory account, no liabilities)

NWC Q2 = $500 (Merchandise inventory account, no liabilities)

NWC Q3 = $550 (Cash account, no liabilities)

NWC Q4 = $1,150 (Cash account, no liabilities)

6 0
3 years ago
Suppose we observe that as the price of lettuce increases from $1 to $2 per head, consumers buy only half the number of heads of
alex41 [277]

Answer:

C. A decrease in the quantity demanded

Explanation:

Price Elasiticity

The law of demand and supply would usually hold that an increase in prices will result in a decrease in demand. Furthermore, an increase in demand generates a corresponding increasing in supply as well.

<u>When the demand of a product is sensitive to the changes in price, then we say that price of the product is elastic</u> but if the product demand not strongly influenced  by price then we say that the pricing is inelastic.

In the case of the lettuce, we can say that the price is elastic, because there is a sensitive reaction between an increase in price from $1 to $2 which immediately leads to a halfing of the quantity demanded. The price is elastic such that an increase in price leads to a decrease in quantity demanded.

8 0
3 years ago
In 2019, Rashaun (62 years old) retired and planned on immediately receiving distributions (making withdrawals) from his traditi
lubasha [3.4K]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

3 0
3 years ago
many credit card companies will let you determine your interest rate when they approve for your card true or false
SashulF [63]

The answer to this is false because all they want is for you to use their card and then it will hurt you credit score because then you will have to pay interest rates.

So it is false

6 0
3 years ago
Read 2 more answers
By lowering production costs, subsidies help foreign competitors gain export markets. True or False
Luden [163]

Answer:

False

Explanation:

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Thus, due to subsidies the cost to producers will be less and then exporters will not be able to get more share as domestic goods will cost cheaper.

Thus, there will not be any gain to foreign competitors in our domestic markets, as they will not get any share extra rather they will loose as a foreign competitor. In fact goods which are exported will also cost low, and therefore, will gain new customers.

Therefore, above stated statement is false.

5 0
3 years ago
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