1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ad libitum [116K]
3 years ago
9

Lisa Lasher buys 400 shares of stock on margin at $21 per share. If the margin requirement is 50 percent, how much must the stoc

k rise for her to realize a 35-percent return on her invested funds
Business
1 answer:
geniusboy [140]3 years ago
6 0

Answer:

$3.68 per share

Explanation:

Lisa Lasher purchases 400 shares of stock on margin at the price of $21 per share

The margin requirement is 50%

= 50/100

= 0.5

The first step is to calculate the amount of money invested

= $21×400×0.5

= $4,200

The amount in which the stock must rise to inorder for Lisa to realize a 35% return on invested funds can be calculated as follows

= 35/100×4,200

= 0.35×4,200

= $1,470

$1470/400 shares

= $3.68 per share

Hence the stock must rise to $3.68 per share for Lisa to realize a 35% return on her invested funds

You might be interested in
For the just completed year, Hanna Company had net income of $41,500. Balances in the companys current asset and current liabili
mylen [45]

Answer:

$37,500

Explanation:

The computation of the net cash provided or used by operating activities are as follows

Cash flow from operating activities

Net income                          $41,500

Add: depreciation expenses $48,000

Add: Decrease in account receivable ($162,000 - $188,000) $26,000

Less: Increase in inventory ($442,000 - $370,000)  -$72,000

Add: Decrease in prepaid expenses ($11,500 - $14,000)  $2,500

Less: Decrease in account payable ($370,000 - $384,000) -$14,000

Less: Decrease in accrued liabilities ($8,500 - $12,000) -$3,500

Add: Increase in income tax payable ($36,000 - $27,000) $9,000

Cash flow provided by operating activities $37,500

The negative sign indicates the cash outflow and the positive sign indicated the cash inflow

3 0
3 years ago
Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual i
Alisiya [41]

Answer and Explanation:

The journal entries are shown below:

1. Inventory $1,800

        Accounts Payable $1,800

(Being purchased on account)

2. Inventory $50

     To Cash $50

(being freight paid)

3. Accounts Payable $51

     To Inventory $51

(being the returned calculator is recorded)

4. Accounts Receivable $670

       To Sales Revenues $670

(Being sales is recorded)

5. Cost of Goods Sold $460

      To Inventory $460

(Being cost of goods sold is recorded)

6.  Sales returns $40

         To Accounts Receivable $40

(being sales return is recorded)

7. Inventory $28.20

      To Cost of Goods Sold $28.20

(Being cost return is recorded)

8. Accounts Receivable $780

      To Sales Revenues $780

(Being the sales is recorded)

9. Cost of Goods Sold $560

      To Inventory $560

(Being the cost of goods sold is recorded)

5 0
3 years ago
Crane Roofing is faced with a decision. The company relies very heavily on the use of its 60-foot extension lift for work on lar
Novay_Z [31]

Answer:

The company should replace the equipment.

Explanation:

The cost analysis is calculated as follows;

                         Retain                Replace                 Net Income

                                     Equipment        Equipment         Increase (Decrease)

Operating expenses     $146,400                0                      $146,400

($24,400*6)  

Repair costs            $39,000                 0                    $39,000

Rental revenue                      0                 -$60000              $60,000

($10,000*6)  

New machine cost              0                $166,500            -$166,500

Sale of old machine   0               -$24,500              $24,500

Total cost                  $185,400   $82,000               $103,400

From the calculation above, the equipment should be replaced as it incur a lesser cost compare to when it is retained.

8 0
3 years ago
Suppose the price elasticity of demand for oranges is 0.8. if a fall frost destroys one-third of the nation's orange crop, how w
Tresset [83]
<span>Total revenue from oranges will fall. Notice that the question assumes everything else unchanged. This means that even though the quantity has been reduced by the frost, the price is unchanged. Thus all producers are selling fewer oranges at the same price. It logically follows that total revenue will fall.</span>
3 0
3 years ago
A company’s accountant is trying to prepare an adjusted trial balance from the list of accounts below. Cash $ 12,000 Retained Ea
Alik [6]

Answer:

114000

Explanation:

4 0
3 years ago
Other questions:
  • Suppose you find that prices of stocks before large dividend increases show on average consistently positive abnormal returns. i
    15·1 answer
  • Maritime Marine Company has total estimated factory overhead for the year of $986,800, divided into four activities: fabrication
    14·1 answer
  • The manager of a gas station noticed that when prices in the convenience store of the gas station decreased, gas sales increased
    5·1 answer
  • Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is $1.49 and the
    15·1 answer
  • Read the sentence.
    11·1 answer
  • All Rite Manufacturing reported the​ following:
    9·1 answer
  • A seller buys an item from a manufacturer for $100 and sells it to a customer for $120. What term describes this extra $20?
    11·1 answer
  • Which loan type requires you to make loan payments while you’re attending school?
    7·1 answer
  • The payroll register for D. Salah Company for the week ended May 18 indicated the following:
    9·1 answer
  • Please help economics
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!