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
Lorico [155]
4 years ago
9

You short-sell 200 shares of Rock Creek Fly Fishing Co., now selling for $50 per share. You are required to post a 50% margin on

the short sale. If your broker requires a 30% maintenance margin, at what price will you get a margin call? (Ignore interests and dividends)
a. $62.50
b. 57.69
c. 56.25
d. 37.50
Business
1 answer:
Paraphin [41]4 years ago
7 0

Answer:

b. 57.69

Explanation:

Calculation for what price that you will get a margin call

First step

200 shares *$25 per share=$10,000

Second step

Based on the information given we are required to post a 50% margin on the short sale.

Now let find the 50% margin

50% margin =50%*$10,000

50% margin=$5,000

Hence,

$10,000+$5,000=$15,000

Third step

Based on the information given we were told that the broker requires a 30% maintenance margin.

.30=($10,000-200p)/200p

60p=$15,000-200p

260p= $15,000

Hence

$15,000/260

Price= $57.69

Therefore the price that you will get a margin call will be $57.69

You might be interested in
John Williams, manager of Phoenix Entertainment, wants to compute the variable overhead efficiency variance for the year. He has
jenyasd209 [6]

Answer:

$10,125 Favorable

Actual quantity of the cost-allocation base used - Actual quantity of the cost-allocation base that should have been used to produce the actual output) × Budgeted variable overhead cost per unit of the cost-allocation base

Explanation:

Variable overhead spending variance = Actual Spending - budgeted Spending based on actual quantity

Variable overhead spending variance = (Actual Input x Actual rate) - ( Actual input x Budgeted rate)

Variable overhead spending variance = (10,125 x $29) - ( 10,125 x $30)

Variable overhead spending variance = $293,625 - $303,750

Variable overhead spending variance = $10,125 Favorable

Variable overhead spending variance is

Actual quantity of the cost-allocation base used - Actual quantity of the cost-allocation base that should have been used to produce the actual output) × Budgeted variable overhead cost per unit of the cost-allocation base

4 0
3 years ago
An investment banker agrees to underwrite an issue of 10 million shares of stock for TWResearch, Inc. on a firm commitment basis
tatuchka [14]

Answer: b) Loss of $7,500,000.

Explanation:

The total the investment bank paid when underwriting was:

= 10.50 * 10,000,000 shares

= $105,000,000

The total they then sell to the public is:

= 9.75 * 10,000,000

= $97,500,000

The profit is:

= Selling revenue from public - Buying cost from company

= 97,500,000 - 105,000,000

= -$7,500,000

4 0
3 years ago
Do all choices have costs?
expeople1 [14]
For every choice you make, you are sacrificing something else. For example, when you choose to buy a new phone, you are sacrificing buying a new laptop. The opportunity cost of buying the phone, is the cost of the laptop. Therefore, evey choice has a cost, because in every choice, there is a sacrifice
5 0
3 years ago
A(n) ________ indicates the decision variables set by the buyer, such as product availability, the backup stock needed to provid
Anestetic [448]

Answer:

Inventory Management Report

Explanation:

Inventory management is the most essential part of every organization where an organization manages its raw material, check their availability of a product, back storage so that company doesn't get a shortage of its product and the quantities. On the other hand inventory management report indicates the strong decision variables are set by the buyers.

Therefore from the above explanation, the correct answer is an inventory management report.

4 0
4 years ago
When you view a selection at Amazon and see "Customers who bought this (item) also bought ...," you are seeing the application o
Dima020 [189]

Answer: collaborative filtering

Explanation:

Collaborative filtering is a technique thta helps to filter out the things that a user can like base on how other identical users react. Here, a small sample of the people with similar taste will be chosen from a larger group.

When you view a selection at Amazon and see "Customers who bought this (item) also bought ...," you are seeing the application of collaborative filtering.

5 0
3 years ago
Other questions:
  • Crank Co. is a software developer that has accumulated costs related to developing a software application for internal use. The
    6·1 answer
  • Sylvester Co. takes out a 12% loan of $500,000 on 1/1/2014 to finance construction of a building for the company’s own use. Cons
    9·1 answer
  • Ecker Company reports $1,750,000 of net income for 2017 and declares $245,000 of cash dividends on its preferred stock for 2017.
    14·1 answer
  • Describe the origins, purposes, and practices of the "long drive" and the "open range" cattle industry. What ended this brief bu
    14·1 answer
  • All of the following describe a balance sheet except which one? A. The balance sheet reflects the results of multiple transactio
    15·1 answer
  • The _________ strategy involves a firm using different marketing mix activities to help consumers perceive the product as being
    10·1 answer
  • During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 80,000 mini refrigerators, of whi
    7·1 answer
  • Which of the following is not an independent contractor relationship? a. one between a corporation and its outside legal counsel
    6·1 answer
  • You just purchased a bond that matures in 5 years. The bond has a face value of $1,000 and an 8% annual coupon. The bond has a c
    10·1 answer
  • Which of the following is the process of identifying and documenting the functional and physical characteristics of a work produ
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!