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yanalaym [24]
3 years ago
13

You purchased 100 shares of IBM common stock on margin at $70 per share. Assume the initial margin is 50%, and the maintenance m

argin is 30%. Below what stock price level would you get a margin call?
Business
1 answer:
SIZIF [17.4K]3 years ago
3 0

Answer:

$50

Explanation:

The computation of the stock price level is shown below:

Maintenance margin = Number of shares purchased × price - loan amount ÷  Number of shares purchased × price

30% = 100 shares × price - $3,500 ÷ 100 shares × price

30% × 100 shares × price = 100 shares × price - $3,500

30 × price = 100 shares × price - $3,500

After solving this, the price would be $50

And, the loan amount equal to

= Number of shares purchased × per share price × initial margin

= 100 shares × $70 × 50%

= $3,500

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Sladkaya [172]

Answer:

The restaurant need to sell 46.6 slices (47 slices)

Explanation:

Giving the following information:

The restaurant sells pizza at a rate of $13.57/slice. Expenses for the restaurant include raw material for pizza at $8.57 per slice, $172.00 as monthly rental and $61.00 monthly as insurance.

To calculate the break-even point in units, we need to use the following formula:

Break-even point= fixed costs/ contribution margin

Break-even point= (172 + 61) / (13.57 - 8.57)

Break-even point= 46.6 slices

8 0
3 years ago
healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of
Leto [7]

Answer:

people

Explanation:

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3 years ago
What is first step in developing a knowledge management system
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The first step is determining what knowledge is most important. the control function involves measuring performance relative to the planned objectives and standards, rewarding people for well work done, and then taking corrective action when necessary.

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5 0
3 years ago
Joshua, a manager, instructed his subordinate, Leona, to mobilize their team and prepare a report on how the office could be mad
Karolina [17]

Answer:

The email message can be read again for further reference by Leona.

Explanation:

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The email or written communication is a more formal way to give a message, the person who receives the message can read it multiple times avoiding mistakes, furthermore, when there is a written message the person who wrote it selected the word and refine the information making it clear and easy to read.

3 0
3 years ago
Charles company used the percent of sales method to determine its bad debts expense. At the end of the current year, the company
fomenos

Answer:

$240,200

Explanation:

The computation of the account receivable amount reported in the balance sheet is given below:

Bad debt expense os

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And,

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