Answer:
Explanation:
a). Total share amount = number of shares bought*price per share = 400 x 149 = 59,600
Initial margin requirement = 55% x 59,600 = 32,780 (This is the equity which you put up. The remainder will be the loan which the brokerage gives you.)
b). Loan amount = Total amount - equity = 59,600 - 32,780 = 26,820
Let the price at which margin call is received be P. Then,
(Market value of shares - loan amount)/market value of shares = maintenance margin
(400P - 26,820) / 400P = 30%
280P = 26,820
P = 95.79
When the share price falls below this price, you will receive a margin call.
Answer:
a. 11,000 units
Explanation:
Particulars Amount
Expected Sales (units) 12,000 [3000+4750+4250]
Add: Ending inventory 18,000
Less; Beginning inventory <u>19,000</u>
Number of units expected to be manufactured <u>11,000 </u>
Interest paid to the share holder of a specific company that offers a dividend. (note: not all companies pay dividends).
Answer: d. All of the answers describe adjustments that must be made to the unadjusted book balance in order to determine the true cash balance.
Explanation:
Options A to C all need to be done to ascertain the True cash balance.
The bank collections from accounts needs to be added to reflect that money was received.
Bank charges need to be subtracted to reflect that the Bank has taken away some money for their administrative roles.
Interest earned from the bank as an income needs to reflect as well.
Answer:
the bank's profits will decrease by $0.10 per $100 of assets
Explanation:
increase in revenues increase in expenses
$40 x 5% = $2 $50 x 3% = $1.50
<u>$40 x 6% = $2.40 </u> <u>$50 x 4% = $2 </u>
+$0.40 + $0.50
if the interest rates increase, the bank's revenues will increase by $0.40 for every $100 worth of assets, but its expenses will also increase and in a higher proportion. The bank's expenses will increase by $0.50, so the net change will be $0.40 - $0.50 = -$0.10 or $0.10 less profits
