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expeople1 [14]
3 years ago
12

Shares of RossCorp stock are selling for $45 per share. Brokerage commissions are 2% for purchases and 2% for sales. The interes

t rate on margin debt is 6.25% per year. The maintenance margin is 30
Business
1 answer:
maksim [4K]3 years ago
6 0

Answer:

The price at which a margin call would be received is $28.929.

Explanation:

The stated question does not contain complete information. The remaining information is as follows.

<em>Assume that you purchase 150 shares of RossCorp stock at $45 each by making a margin deposit of 55 percent. At what price would you receive a margin call?</em>

The price is calculated using the formula for maintenance margin as follows.

Maintenance margin = Equity in account / Value of stock

Equity in account = (Shares purchased x Call price) - (Shares purchased x Remaining ratio x Sale price)

Equity in account = (150 x P) - (150 x 0.45 x 45)

                             = 150P - 3037.5

Value of stock = Shares purchased x Call price

                        = 150P

Inserting these values into the formula for maintenance margin:

0.3 = (150P - 3037.5) / 150P

45P = 150P - 3037.5

105P = 3037.5

P = 28.929

Hence, the price at which a margin call would be received is $28.929.

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kenny6666 [7]

Answer:

Venus, Inc. is employing a push strategy.

Explanation:

This is a promotional strategy used by marketers to "push" their products into the customer and is often used when launching a new product. The idea is to make the product known to the public that <em>does not know</em> of it and is <em>not actively looking for it</em>. Companies often provide incentives to its distributors to give them <u>higher visibility</u> and set up <u>pont-of-sale displays.</u>

7 0
3 years ago
What is the Total Cost of a stock purchase if the stock price is $54, shares purchased 150, with a $5 Commission Fee? (See probl
ankoles [38]

Answer:

a $8,105

Explanation:

To find the answer you have to use the ormula to calculate the total cost of a stock purchase:

Total cost=(Price per stock*Number of stocks)+Commission

Total cost=($54*150)+$5

Total cost=$8,105

According to this, the answer is that the total cost of a stock purchase is $8,105.

3 0
3 years ago
Exhibit 4.1 The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges
jeyben [28]

Answer:

77%

Explanation:

Total debt to total capital ratio = Total liabilities / Total assets

Total debt to total capital ratio = $53,900 / $70,000

Total debt to total capital ratio = 0.77

Total debt to total capital ratio is the ratio of its total debt to its total capital, its debt and equity combined and it is use to measure a company financial solvency.

3 0
3 years ago
What are the advantages of taking a criminal case to the criminal grand jury?
sattari [20]
The main advantage<span> of a </span>grand jury<span> is that it provides a system for conducting a legally-binding "dry run" before a formal and protracted </span>criminal trial<span> takes place. </span>
4 0
3 years ago
In a Las Vegas casino, an employee discovered a flaw in the accounting system. The accounts payable clerk discovered that he was
kap26 [50]

Answer:

- This type of fraud is check tampering

- It amounts to 20.1% of fraud cases in small businesses, and 8.4% of fraud in large businesses

- This type of fraud can be prevented by rotating employees that handle check issuance to vendors, review of budget versus actual expenditure, monitoring of audit trail to see if beneficiary was changed, daily statement download for reconciliation, and restriction of functions for example a employee that issues checks should not also reconcile bank statement.

Explanation:

Check tampering is a very common fraud that involves changing the beneficiary of a valid check so that funds can be diverted.

In the given scenario the accounts payable clerk was able to change checks to his name in order to divert $10,000. This was only discovered by chance when an employee noticed the change in name.

Various internal control measures can be taken to prevent this and they are listed above

4 0
3 years ago
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