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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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Joe's Hardware is adding a new product line that will require an investment of $ 1 comma 540 comma 000. Managers estimate that t
andrew-mc [135]

Answer:

ARR=15.82%

Explanation:

Joe's Hardware

Cash flow 1,540,000

Average Cash flow =305,000+265,000+(6×230,000)/8

Average Cash flow =305,000+265,000+1,380,000/8

=1,950,000/8

=243,750

ARR= Average Annual Operating Income/ Initial investment

=243,750/1,540,000

ARR=15.82%

6 0
3 years ago
Motivation for employees can come from an interesting project, a completed sale, or the discovery of a perfect solution, all of
garik1379 [7]

Answer:

Intrinsic rewards.

Explanation:

An intrinsic reward is a reward the person derives directly from performing the job itself. An interesting project, an intriguing subject that is fun to study, a completed sale, and the discovery of the perfect solution to a difficult problem all can give people the feeling that they have done something well. This is the essence of the motivation that comes from intrinsic rewards.

5 0
3 years ago
The election committee that you are chairing finally seems to be getting something done. For a while, you thought nothing would
SVEN [57.7K]

Answer:

The correct answer is (c.) storming, norming

Explanation:

From the statements, it can be seen that the committee members were found to be arguing about supremacy of individual ideas. This stage is known normally as the <em>storming stage</em> of a group of people while the stage of group development is referred to as the <em>norming stage</em>.

Thus the statement should read like this: "The members appear to have worked through the____storming_______stage and entered the__norming_______stage of group development".

8 0
3 years ago
A. On March 2, Sheridan Company purchased $862,000 of merchandise from Skysong Company, terms 2/10, n/30.
Delicious77 [7]

Answer:

Sheridan Company

Journal Entries:

a.  March 2: Debit Inventory $862,000

Credit Accounts Payable (Skysong Company) $862,000

To record the purchase of merchandise on credit terms 2/10, n/30.

b. March 6: Debit Accounts Payable (Skysong Company) $110,700

Credit Inventory $110,700

To record the return of merchandise on account.

c. March 12: Debit Accounts Payable (Skysong Company) $751,300

Credit Cash $736,274

Credit Cash Discounts $15,026

To record the payment on account in full settlement, including cash discounts.

Explanation:

1) Data and Analysis:

a.  March 2: Inventory $862,000 Accounts Payable (Skysong Company) $862,000 terms 2/10, n/30.

b. March 6: Accounts Payable (Skysong Company) $110,700 Inventory $110,700

c. March 12: Accounts Payable (Skysong Company) $751,300 Cash $736,274 Cash Discounts $15,026

3 0
3 years ago
Cooperation among oligopolies runs counter to the public interest because it leads to underproduction and high prices. In an eff
lesya [120]

Answer:

The correct answer is letter "C": The Justice Department.

Explanation:

The United States Department of Justice (<em>DOJ</em>) enforces the law and defends the interest of the U.S. The entity seeks fair punishment for all those with unlawful behavior and ensures public safety from foreign and domestic threats. Through the Antitrust Division (<em>ATR</em>), the institution reviews mergers and acquisitions to verify their effect and it challenges those that threaten to harm fair competition.

4 0
3 years ago
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