If you wished to leverage the ubiquitous nature of the web to differentiate your product, you would:

You purchased 300 shares of common stock on margin for $60 per share. The initial margin is 60% and the stock pays no dividend.

creativ13 [48]

Answer:

Rate of Return is -41.67%

Explanation:

If initial margin is 60%, then the borrowed amount is 40%

Rate of Return =Profit / Initial Investment

where

Profit = Total Return − Initial Stock Value − Transaction Costs − Interest

And

Total Return = Ending Market Value + Dividend

Amount = 300 shares x $60 = $18,000

$18,000 * 0.40 = $7,200 Loan

And

Initial investment would be:

Initial Investment = $18,000 * 0.60

Initial Investment = $10,800

Therefore, the loan amounts to $18,000 and the initial investment would be $10,800

Proceeds after selling stock and repaying loan = (300 shares * $45)

= $13,500

= Proceeds after selling stock and repaying loan - Loan amount

= $13,500 - $7,200

= $6,300

Computing rate of return as:

Rate of Return = ($6,300 - $10,800) / $10,800

= - $4,500 / $10,800

= -0.4166

= - 41.67%

Ignoring the interest of margin, the Rate of Return is -41.67%

5 0

3 years ago

2. Compare the performance of East Coast Yachts to the industry as a whole. For each ratio, comment on why it might be viewed as

Sati [7]

Answer: hello your question has some missing data attached below is the missing data

answer :

i) The current ratio is higher than lower quartile and this signifies good liquidity position

The Quick ratio is higher than the lower quartile and also higher than the median but it is lower than the upper quartile and this signifies that the value of inventory is been deducted from the current assets. to show solvency position.

ii) Inventory Turnover Ratio is higher when compared to the industry ratios

Explanation:

<u>i) Based on each ratio </u>

The current ratio is higher than lower quartile and this signifies good liquidity position for east coast yachts but the value of the lower quartile been lower than the median and upper quartile represents a position of lower solvency

The Quick ratio is higher than the lower quartile and also higher than the median but it is lower than the upper quartile and this signifies that the value of inventory is been deducted from the current assets to show solvency position of the company.

<u>ii) The ratio can be interpreted as</u>

Inventory Turnover Ratio is higher when compared to the industry ratios i.e. Inventory is been turned into cash by maximum times/as many times as possible per year.

3 0

3 years ago

Which statement is true?

gulaghasi [49]

the statement that is true is c

7 0

3 years ago

Read 2 more answers

Assume Digby Corp. is downsizing the size of their workforce by 10% (to the nearest person) next year from various strategic ini

skad [1K]

Answer:

$318,240

Explanation:

Calculation to determine How much will the company pay in separation costs if these exit interviews are implemented next year

First step is to calculate the Seperation cost per employee

Seperation cost per employee=$5,000+$100

Seperation cost per employee=$5,100

Now let calculate How much will the company pay in separation costs

Total cost =(624*10%)*$5,100

Total cost =62.4*$5,100

Total cost =$318,240

Note that the Total Employee of 624 was given in Complement

Therefore The amount that the company will pay in separation costs if these exit interviews are implemented next year is $318,240

7 0

3 years ago

in most large cities there are a large number of bakeries. these bakeries produce similar, but not identical, products. some bak

lana [24]

The bakery market in a large city is an example of Monopolistic competition.

Monopolistic competition exists when many companies offer competing products or services that are similar, but not perfect, substitutes. In this case, the bakeries in large cities that produce similar, but not identical products. The market structure is a form of imperfect competition.

Some of the characteristic of a monopolistic competition structure are;

The presence of many companies.

Each company produces similar but differentiated products.

Companies are not price takers.

Free entry and exit in the industry.

Companies compete based on product quality, price, and how the product is marketed.

For further clarification refer here;

brainly.com/question/13311608

#SPJ4

8 0

2 years ago