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tankabanditka [31]
3 years ago
11

You sell short 300 shares of Microsoft that are currently selling at $30 per share. You post the 50% margin required on the shor

t sale. If you earn no interest on the funds in your margin account, what will be your rate of return after 1 year if Microsoft is selling at $27? (Ignore any dividends.)
Business
1 answer:
Lostsunrise [7]3 years ago
4 0

Answer:

20%

Explanation:

Data provided

Currently selling per share = $30

Cost of Microsoft after selling = $27

Margin percentage = 50%

The calculation of rate of return is shown below:-

Rate of return = (Currently selling per share - Cost of Microsoft after selling) ÷ Margin percentage × 100

= ($30 - $27) ÷ 50% × 30

= $3 ÷ 15

= 0.20

or

20%

Therefore for calculating the rate of return we simply applied the above formula.

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8 0
3 years ago
services act as a middleman, allowing individuals to securely send and receive money. select all that apply. a. p2p b. b2b c. b2
k0ka [10]

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<h3>How to illustrate the information?</h3>

It should be noted that p2p simply means the peer to peer platform that allows two individuals to be able to interact directly without the third party.

Peer-to-peer (P2P) lending eliminates the need for a middleman financial institution by allowing borrowers to get loans directly from other borrowers. P2P lending has become much more popular as a substitute for traditional funding thanks to websites that make it possible.

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Therefore, the correct option is A.

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7 0
2 years ago
Suppose that $2000 is loaned at a rate of 11.5% , compounded semiannually. assuming that no payments are made, find the amount o
Zolol [24]

This problem is solved by using the compound interest formula:
 A=P(1+(I/period))^(number of periods)
 Where A = amount accumulated and P = amount loaned and I = Interest 
 A = ? P = $2, 000, I = 0.115, Period = 2 (semi annually) Number of period = 2
*7 (I. e paid twice over a 7 yrs span) 
 So we have 
 A = 2000 ( 1 + 0.115/2)^(14)
 A = 2000 ( 1 + 0.0575)^(14)
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6 0
3 years ago
Poskey Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following
MrRa [10]

Answer:

\left[\begin{array}{cccccc}&Cost&Assembly&Setting Up&Other&Total\\wages&349,000&226,850&69,800&52,350&349,000\\Depreciation&290,000&101,500&58,000&130,500&290,000&Utilities&199,000&29,850&149,250&19,900&199,000&Total&838,000&358,200&277,050&202,750&838,000&\end{array}\right]

Explanation:

We mulitply each line by the stated percent of each activity

<u>for example</u>

Setting Up % x Utilities= Utilities cost assigned to setting up

199,000x 75% = 149,250

Assembly % Depreciation= Depreciation cost assigned to assembly

35% x 290,000 = 101,500

This process must be done to assign each portion of cost.

6 0
3 years ago
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