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Klio2033 [76]
3 years ago
12

"In a new margin account, a customer buys 1,000 shares of ABC stock at $40 per share. The stock rises to $45 during the next wee

k and subsequently declines back to $40. If there are no other transactions in the account, the current SMA balance would be:"
Business
2 answers:
r-ruslan [8.4K]3 years ago
6 0

Answer:

$20,000

Explanation:

The balance of the special memorandum account (SMA) will equal half the total equity of the account. When an investor buys on the margin, he/she will invest $0.50 and the broker will invest the other $0.50.

So the investor's SMA = equity - margin requirement = $40,000 - $20,000 = $20,000

laiz [17]3 years ago
3 0

Answer: SMA Balance $40000

Explanation:

the Special Memorandum Account(SMA) Balance will remain at $40000 (1000 x $40). The SMA Balance does not decrease when the market value of the security decrease

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A company has net working capital of $2,204, current assets of $6,475, equity of $22,215, and long-term debt of $10,535. What is
kherson [118]

Answer:

Net fixed assets is $30546.

Explanation:

Given the net working capital = $2204

The current assets of the company = $6475

The equity of the company = $22215

Long term debt of the company = $10535

Net Working Capital = Current Assets – Current Liabilities

2204 = 6475 – current liabilities

Current liabilities  = 6475 – 2204 = 4271

Total assets = Current Liabilities + Long term Debt + Total Equity

= 4271 + 10535 + 22215

= $37021

Total Liabilities and Stockholders Equity = Total Assets

Total assets = $37021

Total Assets = Current Assets + Net Fixed Assets

37021 = 6475 + net fixed assets

Net fixed assets = 37021 – 6475 = $30546

4 0
3 years ago
You own 200 shares of Loner stock. The firm announced that it will be issuing a dividend of $.20 a share one year from today fol
nikklg [1K]

Answer:

value of your total investment income   362.80

Explanation:

The computation of the value of your total investment income in two years is shown below

Value of Dividend after 2 years (200 × .20 × 1.07)42.80

Value of Liquidating Dividend (200 × 1.60) 320.00

value of your total investment income   362.80

7 0
3 years ago
The relationship between an employer and an employee can be thought of in terms of a(n) __________, a description of what an emp
myrzilka [38]

The answer is psychological contract.

A broken psychological contract may occur when an employee believes that working extra would be naturally rewarded. This, however, may not be business policy. If the person is salaried, they may not be compensated for the extra hours worked.

Daily acts and remarks made in the workplace, as well as how they are interpreted by all parties involved, have an impact on the contract.

`

In other words, it is a promise developed via regular workplace encounters in which the organization learns what is expected of each employee.

Psychological contracts evolve and adapt to the organizational working culture over time. However, they are generally difficult to change and can differ across individual party members and whole organizations.

To know more about employer and employee relationship click here:

brainly.com/question/13400621

#SPJ4

8 0
2 years ago
In Macroland there is $10,000,000 in currency. The public holds half of the currency and banks hold the rest as reserves. If ban
kipiarov [429]

Answer:

$50,000,000; $55,000,000

Explanation:

In Macroland there is $10,000,000 in currency. The public holds half of the currency and banks hold the rest as reserves. If banks' desired reserve/deposit ratio is 10%, deposits in Macroland equal <u>$50,000,000 </u> and the money supply equals <u>$55,000,000</u>

3 0
3 years ago
The one-year interest rate over the next 10 years will be 3%, 4.5%, 6%, 7.5%, 9%, 10.5%, 13%, 14.5%, 16%, and 17.5%. Using the e
Alja [10]

Answer:

Explanation:

interest rates on a three-year bond =(int in year1+int in year2+int in year3)/n =  (3+4.5+6)/3 =4.8%

interest rates on a six-year bond = (3%+4.5%+6% +7.5%+ 9%+ 10.5%)/6 = 7.35%

interest rates on a nine-year bond = (3%+4.5%+ 6%+ 7.5%+ 9%+ 10.5%+ 13%+ 14.5%+16%)/9 =10.23%

So, int rate on a 3 year bond is 4.8%; on a 6 year bond is 7.35%; on a 9 year bond 10.23%

5 0
3 years ago
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