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melomori [17]
3 years ago
8

A year ago, Kim Altman purchased 200 shares of BLK, Inc. for $25.50 on margin. At that time the margin requirement was 40 percen

t. If the interest rate on borrowed funds was 9 percent and she sold the stock for $34, what is the percentage return on the funds she invested in the stock
Business
1 answer:
salantis [7]3 years ago
4 0

Answer:

69.83%

Explanation:

Calculation for Kim Altman percentage return on the funds she invested in the stock

Calculation for Kim’s own money =

$5100 x .4 = $2040

Caluculation for total Long Position =

$34 x 200 = $6800

Calculation for Interest Borrowed =

$3060 x .09 = $275.4

Total gain/profit =

$6800 - $5100 - $275.4

= $1424.60

Percentage on Return

= $1424.60 / $2040 = .6983

.6893x 100 = 69.83%

Therefore the percentage return will be 69.83%

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3 years ago
Which of the following events would cause a rightward shift of the AD curvea rightward shift of the AD curve​, other things bein
Karolina [17]

Answer: C. There has been a decline in the foreign exchange value of the nation’s currency.

Explanation:

The Demand curve of a country can be written as an equation which is

C+I+G+(X-M)

C is consumption, I is investment, G is government expenditure, X is exports, M is imports and X-M is net exports.

When ever consumption, investment, government expenditure or net exports increase the demand curve shifts to the right and whenever they decrease the demand curve shifts to the left.

In this case when the value of the currency foreign exchange declines, the country reduce its imports because they are now more expensive as your currency's value is declining and the exports will increase because they will now be cheaper to foreign buyers as their currency is now gotten stronger. This decrease in imports and increase in exports will  increase net exports and an increase in net exports will shift the demand curve to the right

8 0
3 years ago
Sandhill uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (
miskamm [114]

Answer:

$567,056

Explanation:

Cost :

Merchanidize available for sale

= Beginning inventory + Purchases + Freight in

= $386,000 + $1,975,000 + $125,000

= $2,486,000

Retails:

Merchandize available for sale:

= Beginning inventory + Purchases + Markups

= $590,000 + $3,220,000 + $68,000

= $3,878,000

Ending inventory at retail = Retail total -markdowns - Net sales

= $3,878,000 - $104,000 - $2,920,000

= $854,000

Cost to retail ratio = $2,486,000 ÷ ($2,920,000 + $854,000)

= $2,486,000 ÷ $3,744,000

= 66.40%

Ending inventory at retail = $854,000

And

Cost to retail ratio = 66.40%

Therefore,

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4 0
3 years ago
Confronted with the same unit cost data, a monopolistic producer will charge Group of answer choices
dsp73

Answer:

a higher price and produce a smaller output than a competitive firm

Explanation:

A monpolistically competitive firm is a firm that :

1. Sells differentiated products from other firms in the industry.

2. Has many buyers and sellers

3. Is a price maker

4. Has no barrier to entry or exist of firms

An example of a monpolistically competitive firm is a resturant.

A competitive firm is a firm that:

1. Sells identical goods with other firms in the industry.

2. Is a price taker . Prices are set by forces of demand and supply

3. Has many buyers and sellers

4. There are no barriers to entry or exist of firms.

When a monopolistic and competition firm are faced with the same unit cost, a monopolistic firm would aim to earn profit by increasing its price and reducing the quantity produced.

While a perfect competition would sell at the price set by the forces of demand and supply. The firm can increase the quantity produced in order to increase revenue.

A monopolistic firm is able to charge a higher price for its products while a perfect competition isn't.

5 0
3 years ago
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