1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
natka813 [3]
3 years ago
10

You purchased 200 shares of ABC common stock on margin at $50 per share. Assume the initial margin is 50% and the maintenance ma

rgin is 30%. You will get a margin call if the stock drops below ________. (Assume the stock pays no dividends, and ignore interest on the margin loan.)
$28.95
$35.71
$30.77
$26.55
Business
1 answer:
anygoal [31]3 years ago
3 0

Answer:

get margin call if stock drop below $35.71

Explanation:

given data

share = 200

margin = $50 per share

initial margin = 50 %

maintenance margin = 30%

to find out

margin call if the stock drops below

solution

we know equity is = 200P - 5000

and here P is margin call if stock drop

margin is express as

margin = \frac{equity}{share} = maintenance margin

\frac{200P - 5000}{200P} = 0.30

200P - 5000 = 60P

P = \frac{5000}{140}

P = 35.71

so get margin call if stock drop below $35.71

You might be interested in
What is the minimum value of the box-and-whisker plot?
natka813 [3]

Answer:

A;36

Explanation:

So lets recall the different parts of a box and whisker plot.

The dot at the very right end of it is the maximum, where the largest number is.

After that, the box to the right is the upper quartile.

On the left, the box on the left is the lower quartile.

In between the right and left of the box is the median, which seperates the upper quartile by the lower quartile.

Finally, we have the dot farthest to the left, which is the minimum.

So on our box and whisker chart, lets look at the dot farthest to our left, since thats the minimum.

<u>This should be 36.</u>

Hope this helps! ;)

8 0
3 years ago
Strategic plans translate tactical plans into specific goals and actions for small units of the organization and focus on the ne
alekssr [168]
False it’s operational plans
7 0
3 years ago
In most businesses, what is the most costly factor of production?
Paraphin [41]
Man it keeps recomending your questions XD its Human capital
4 0
3 years ago
Read 2 more answers
On the twentieth day of the month, room sales at the Motor Lodge Motel exceeded its breakeven point for the month. Revenue gener
Firdavs [7]

Answer:

D) increase at a faster rate than the costs associated with those sales.

Explanation:

If the break even point was reached during the 20th day of the month, then any revenue generated during the remaining 10-11 days will increase net profits. The amount of net profit increase will be determined by the contribution margin of each service provided. The contribution margin = net sales - variable costs. Since the fixed costs have already been covered, the contribution margin will be equal to the net profit.

4 0
3 years ago
Need help fast, please! Will choose the brainliest!
babymother [125]

Answer:

A covenant not to sue

Explanation:

8 0
3 years ago
Other questions:
  • Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit
    11·1 answer
  • A company has the following aging schedule of its accounts receivable with the estimated percent uncollectible:______.
    5·1 answer
  • Please help ASAP giving BRAINLIEST , Did I get this correct?
    15·1 answer
  • Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.60 per mile driven. Joyce has determined that if
    13·1 answer
  • Assuming no direct factory overhead costs (i.e., inventory carry costs) and $3 million dollars in combined promotion and sales b
    9·1 answer
  • Assume that Jane’s marginal propensity to consume equals 0.8, and that in 2004 Jane spent $36,000 from her disposable income of
    8·1 answer
  • The interest on some municipal bonds is tax free, in contrast to the interest on corporate bonds. If the current annual interest
    10·1 answer
  • If the length of the axle was cut 5mm shorter, the volume would be reduced to 280.7mm3. What would be the new mass of the axle?
    10·2 answers
  • Budgeted material-handling costs are $50,000. The material-handling cost per wall mirror under ABC is: $2,000. $1,000.
    13·1 answer
  • Reuben Garza just graduated from high school and had begun a five year apprenticeship as a machinist. His starting wage is $8.25
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!