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topjm [15]
3 years ago
15

The margin requirement on a stock purchase is 25%. You fully use the margin allowed to purchase 100 shares of MSFT at $25.

Business
1 answer:
loris [4]3 years ago
8 0

Answer:

Return or Percentage Loss=-0.48=-48%

Explanation:

Given Data:

The margin requirement on a stock purchase =25%

Number of shares=100 shares

Price of purchase=$25/ share

Drop in Price=$22

Required:

Percentage loss=?

Solution:

Loss occurred=($22-$25)*100

Loss occurred=-$300

Actual amount at which shares are bought=0.25*($25*100)

Actual amount at which shares are bought=$625

Return or Percentage Loss=\frac{Loss}{Actual \ Amount}

Return or Percentage Loss=\frac{-300}{625} =-0.48

Return or Percentage Loss=-0.48=-48%

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When Treasury bills are auctioned off, if buyers are willing to pay $900 for a $1,000 treasury bill, the government is being ask
andriy [413]

The government is paying 10% in interest.

What interest on Treasury bills?

The interest on Treasury bills compares the interest earned by the investor to the face value of the T-bill, in other words, it is determined as the interest(i.e. face value-purchase price) divided by the face value.

From an investor's perspective, I mean the person  buy purchasing the T-bill, his rate of return is the interest divided by the amount invested, which is the purchase price.

Interest=face value-purchase price

face value=$1,000

purchase price=$900

interest=$1000-$900

interest=$100

government's interest rate=interest/face value

government's interest rate=$100/$1000

government's interest rate=10%

In other words, the government by a way of issuing the bills is paying interest of 10% to the lenders

Read more on bonds generally including government bond on:brainly.com/question/22013938

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4 0
2 years ago
You have an opportunity to invest in Australia at an interest rate of 8%. Moreover, you expect the Australian dollar (A$) to app
earnstyle [38]

Answer:

10.16%

Explanation:

The computation of the effective return for this investment is shown below:

Let us assume that we invested an amount in Australian dollars 100

The return is 8%

After one year, the amount is 108

Now the converting amount is 110.16 (108 × 102%)

Now the effective rate for this investment is

= 110.16 - 100

= 10.16%

7 0
3 years ago
Assume that the Texas legislature is not in session and the economy has gone into recession. What must occur before legislators
Vadim26 [7]

Complete question:

Assume that the Texas legislature is not in session and the economy has gone into recession. What must occur before legislators can act to reformulate policy

A. The legislature as a body must wait for the comptroller to decertify the budget.

B. The legislature must wait for a special session to be called.

C. The legislature must wait for economic conditions to deteriorate to a point where a constitutional provision allowing deficit spending kicks in.

D. The legislature must wait until the federal government increases monies for state governments.

Answer:

The legislature must wait for a special session to be called.

Explanation:

Once the Texas legislature passes a budget and the governor has acted, after 6 months does the budget go into effect.

The Texas legislature passed a law that requires that an agency take a specific action in order to solve a problem. At formulation stage of the policy making process did the passage of this law occur

A special session (also a exceptional session) in a parliamentary term is a time when the assembly meets outside the usual legislative session. Anyone holding a special meeting would be subject to different requirements, such as by a legislative vote in a normal session, the president, or the presiding officer of the legislature.

6 0
3 years ago
Which of the following is a disadvantage to choosing a sole proprietorship business structure?
aliya0001 [1]

Which of the following is a disadvantage to choosing a sole proprietorship business structure? The owner has personal responsibility for the company's liabilities.

A sole proprietorship is the simplest business form that can be operated. A sole proprietorship is owned by one individual and they are responsible for all of the debts the company has. The business is ran by one person and there is no distinction between the person and the business, both fall under the same number (social security number) when filing taxes.

4 0
3 years ago
Read 2 more answers
A firm run by a rational entrepreneur would want to hold inventories.<br> True<br> False
RUDIKE [14]
True
Because having inventories would mean the following:
1. Holding Inventory avoids loss of sales
2. Holding Inventory gains quantity discount
3. Holding Inventory reduces order cost 4. Achieve efficient production runs by holding inventory
5. Holding Inventory reduces risk of production shortages
4 0
3 years ago
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