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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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If nations such as Germany, Japan, and the United States prohibited international trade in automobiles, a likely effect would be
Musya8 [376]

Answer:

C. the price effect would become a more significant consideration for each firm that makes automobiles.

Explanation:

The situation above is highly related to the topic about "supply" and "demand." If the nations of <em>Germany</em>,<em> Japan</em> and <em>the U.S.A</em>. prohibits the international trade in automobiles, this will result to a<u> surplus of automobile goods within the country.</u> Since these automobiles were meant to be sold abroad, the prohibition will<em> lower its international demand.</em> Such increase in supply will have a significant effect on the price of the automobiles. This is the reason why each firm should have to consider the situation's effect on the price of the automobiles and related goods.

So, this explains the answer.

4 0
3 years ago
Joe, a hard and productive worker, quit because he couldn’t get along with his coworkers. this would be diagnosed as a(n) ______
anastassius [24]
The answer to this question is: Group level problem
Group level problems refers to the problem that arised within different individuals in one social group.
The cause of this type of problems could range from leadership, emotional, ambition, Clashes between opinion, difference in job standards, etc.
8 0
3 years ago
A customer purchased a $2, 700 item at Appliance World, paying with a credit card. Appliance World is charged a 2% fee by the cr
dalvyx [7]

Answer:

B.

Explanation:

Credit card is one of the most common way of making payment while a customer purchases anything in the market. The credit card company charge an amount that is payable by the seller.Thus, it is an expense for the one selling the product.

Given:

Credit card fee: 2%

Sales = $2,700

Credit card charges can be calculated as:

Credit card charges = Sales*Credit card fee

Credit card charges = $2,700*2%

Credit card charges = $54

Now, credit card charge is an expense so it will be debited. The amount is yet to be received so accounts receivable will also be debited. The revenue has been earned so it will be credited.

Thus, the journal entry for the given transaction has been attached below:

4 0
3 years ago
The Federal Financial Institutions Examination Council (FFIEC) promotes uniform practices among the federal financial institutio
rosijanka [135]

Answer:

The correct option is 1

Explanation:

The Federal Financial Institutions Examination Council (FFIEC) is a formal U.S. government interagency body composed of five banking regulators that is empowered to prescribe uniform principles, standards, and report forms to promote uniformity in the supervision of financial institutions.

FFIEC was established in March 10, 1979, pursuant to title X of the Financial Institutions Regulatory and Interest Rate Control Act of 1978 (FIRA).

8 0
3 years ago
The preparation of a bank reconciliation is an important cash control procedure. If a company deposits cash receipts daily and m
castortr0y [4]

Answer & Explanation :

Bank Reconciliation Statement is prepared to reconcile (match) the differences between bank balance as per cash book & bank balance as per pass book, at end of an accounting period.  

The differences may arise because of following reasons :

  • Errors committed by firm or bank
  • Cheques paid but not collected, upto the last date (added in cash book, but not in bank balance)
  • Cheques issued but not yet presented for payment, upto last date (subtracted in cash book, but not in bank balance)
  • Direct expenses & direct incomes settled by bank (done in bank balance, but not in cash book)

BRS involves starting with balance as per any book - cash book or passbook. Then, the adjustments for mismatch are done, to arrive at correct balance as per the other book.

8 0
3 years ago
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