Answer:
$1,000
Explanation:
The above means that for every $1 increase in the market value in a long margin account, the SMA increases by $0.50
If the market value rises to $22,000, the account will show
Long market value - Debit = Equity % SMA
$22,000 - $10,000 = $12,000
Against $22,00 of market value, 50% can be borrowed or $11,000. Since the debit is $10,000, an additional $1,000 can be borrowed . This is the SMA
Answer:
D) being original
Explanation:
An advertising copy is the main text or phrase used in an advertisement.
The copy used in this commercial is original, specially given the context. Generally advertisements show the product that is being advertised, not a substitute product (cow meat is substitute to chicken meat). This ad tries to be funny in showing that cows prefer people eating chicken instead of them.
Answer:
The selling price should be $66K.
Explanation:
Capital Budgeting defines the future value as present value times the interest rate over the years FV=(1+i)^n, the following table shows both future values for Neighbor’s house and mine to calculate the differences.
Future value (FV) = Present value (PV) + (1 + Interest rate)n, where n is raised to the power of the number of years.
FV = PV +p (1+r) -30
PV = 60000
= $60000 (1+0.075) - 30
= $60000 (0.11422)
= $6859.26 + $60000
= $66853.26
.
Given this estimate, my selling price will now be $66K, making a profit of $5K, this way the future seller can either choose to buy my home or any other in the neighborhood since the future value will be the same even though the interest rate is 0.5% higher.
Answer:
$3,260
Explanation:
Preparation of December statement of cash flows for Ernst Consulting
ERNST CONSULTING Income Statement
For Month Ended October 31
REVENUES
Consulting fees earned $17,450
Total revenues $17,450
EXPENSES
Rent expense $4,530
Salaries expense $8,090
Telephone expense $880
Miscellaneous expenses $690
Total expenses $14,190
Net income $3,260
($17,450-$14,190)
Therefore December statement of cash flows for Ernst Consulting will be $3,260
Answer:
Is out of the money
Explanation:
A strike price is a particular price which if activated, derivative contracts can be sold or bought. Derivatives are considered as products in finance where underlying assets are major determinants of their value.
The stock price is considered as the current price that a share of stocks is sold and bought on the market.
Because the strike price is $65 and the stock price (market price) is $60, Disney is out of money and cannot be exercised profitably.