What is not an example of money?

Old Economy Traders opened an account to short-sell 1,550 shares of Internet Dreams at $74 per share. The initial margin require

svetlana [45]

Answer:

A.37%

B.No because the margin is above the requirement at 37%.

C.-118%

Explanation:

Old Economy Traders

a.

1,550 shares*$74 per share = 114,700

margin requirement is 52% so equity =59,644

1 year later price increase to 81

$1550 shares*$81 per share = 125,550

Dividend = $4*1550 = 6,200

Margin = 114,700/131750 = 37%

b.

No because the margin is above the requirement at 37%.

c.

Price of 1550 stock year 1 at 81$/share = 125,550

114,700 – 125,500 = -10800

Rate of return = (-10800 -59,644)/59,644= -118%

8 0

3 years ago

Poe Company is considering the purchase of new equipment costing $80,000. The projected net cash flows are $35,000 for the first

sergey [27]

Answer:

$23,773.65

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested

NPV can be calculated using a financial calculator :

cash flow in year 0 = $-80,000.

Cash flow in year 1 and 2 = $35,000.

Cash flow in year 3 and 4 = $30,000.

I = 10%

NPV = $23,773.65

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

5 0

3 years ago

An entrepreneur purchased an existing bicycle shop that had between $120,000 and $150,000 worth of sales annually for the past t

stepan [7]

Answer:

Forecasted sales: 25% maximum reduction.

Recommendations: try new ways to increase sales during the months left, or reduce its own cost.

Explanation:

If sales usually increase between March 1 and June 30, and this period accounts for 50% of annual revenue, if revenue is proportional to sales, a reduction in sales will reduce revenues.
Between March 1 and June 30 there are 4 months.
If sales usually pick up in March and this year they were low until the beggining of May, it means that only 2 of the 4 most productive months were higly productive.
If 50% of sales are concentrated in this 4 months, and this year 2 of the 4 months were not really productive, a maximum 25% of sales (and hence of revenues) may have lost.
Therefore, revenues may lower by 25% this year.
To avoid losses, it is advisable to try new ways to increase sales during the months left, that can consist on doing some advertisement and promotions (related to health care linked to exersice for example), that helps increasing sales in the months left, to compensate the looses of the 2 months. If sales cannot be increased, it is advisable to reduce cost to avoid further looses.

6 0

3 years ago

You and the HR manager, along with suggestions from the branch manager, must determine if background checks on all employees are

sergey [27]

Answer:

Terminate his employment

Explanation:

Based on the fact and information, Tibbits should be discharged from employment for his failure to disclose this relevant conviction. As a convicted offender, he is considered in the eyes of the law to be high-risk and should not be allowed to enter unsuspecting clients’ homes. It would be the company's liability if he acts non professionally and inappropriately at a jobsite.

7 0

2 years ago

If the Mayor of Little Rock, Arkansas is also a director of a Little Rock municipal securities dealer, which of the following st

riadik2000 [5.3K]

Answer: B. I and IV

Explanation:

A CONTROL RELATIONSHIP is defined as a situation where an issuer is controlled by the DEALER, or the Dealer is controlled by the Issuer, or there common control between the Issuer and Dealer of the security. As Mayor of Little Rock and also the Director of the Municipal Dealer, there is definitely a CONTROL relationship going on.

The Municipal Securities Rulemaking Board (MSRB) requires that when a control relationship exists between a municipal securities dealer and the issuer whose bonds are recommended by that dealer, the nature of the relationship must be DISCLOSED to the customer.

Hence option B is correct.

4 0

3 years ago