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
patriot [66]
4 years ago
9

Doug buys Mayonnaise, Inc. stock for $112 using a margin account with a 50% initial margin and a 35% maintenance margin. Assumin

g the price of the stock drops to $56, how much would Doug need to pay to restore the equity in his account to the maintenance margin?
Business
1 answer:
JulsSmile [24]4 years ago
3 0

Answer:

$56

Explanation:

The amount Doug needs to pay to restore the equity in his account to the Maintenance margin (which is the smallest quantity of equity that an investor have to maintain in the margin financial account following when the purchase has been made) is calculated below

Initial margin = $112×50% = $56

Maintenance margin = $112×35% = $39.20

Drop in share price = $112-$56 = $56

Initial margin balance = $56-$56 = $0

Amount needed to pay = $56

You might be interested in
Which of the following collect and evaluate career outlook information:
Digiron [165]
Don’t fall for the links love!
4 0
3 years ago
Read 2 more answers
Look at the following data: durable goods = $200 billion; nondurable goods = $350 billion; services = $600 billion; fixed invest
Jet001 [13]

Answer:

The answer is $1,701 billion

Explanation:

Gross Domestic Product (GDP) is the cumulative (total) market value of the final outputs (goods and services) produced within an economy(country) during a given period of time usually a year.

GDP = C + I + G + (X - M)

where C - expenditure by households or consumers

I - investments by businesses or firms

G - expenditure from the government

X - exports from the country

M - imports into the country

Total consumers' expenditure is:

durable goods = $200 billion;

nondurable goods = $350 billion; services = $600 billion

Total. $1,150 billion

Total business investment is $200billion

Therefore, GDP is

$1,150 + $200 + $400 + ($30 - $79)

=$1750 - $49

= $1,701 billion

6 0
3 years ago
Aerelon Airways, a commercial airline, suffers a major crash. As a result, passengers are
pickupchik [31]

Answer:

Option B $1.03

Explanation:

First lets calculate present value = cash flow(PVAF, life, rate) where PVAF = present value annuity factor

= 15(PVAF, 10, 5 years)

from the annuity table

Present value = 15 * 3,790 = $56.8618 million

The decrease in Present value will be  $56.8618 million

Decrease in price = present value/number of share = 56.8618/66 = 1.033851 approx $1.03

7 0
3 years ago
Who knows how to fill out the Journal?
Valentin [98]

Answer:

first make journal entries

7 0
3 years ago
Read 2 more answers
When organizing an Agile Release Train to optimize the flow of work and increase the delivery of value, which three DevOps pract
d1i1m1o1n [39]

The three devops that are encouraged in the agile release train are:

  • Visualize work in process and reduce batch sizes
  • Perform System Demos
  • Plan and rehearse failure response practices

<h3>What is the agile release train?</h3>

This is used to refer to the agile teams that are known to continuously

  • develop
  • deliver
  • operate.

They are known to operate one or more solutions of value in order to solve important problems.

Read more on an agile team here:

brainly.com/question/14257975

#SPJ1

7 0
2 years ago
Other questions:
  • Which item is more economical?
    11·2 answers
  • To ensure that as many individuals as possible use helmets, the government recently decided to subsidize the production of helme
    8·1 answer
  • When was the Fair Labor Standards Act (FLSA) established?​
    8·1 answer
  • Marcos Company reported the following items on its financial statements for the year ending December 31, 2016:
    10·1 answer
  • What is the south african government providing and for whom ?
    12·1 answer
  • Emily wants to open a chain of hair styling salons and hopes to attract investors to help finance growth. She considered forming
    12·1 answer
  • Cedric Company recently traded in an older model computer for a new model. The old model's book value was $140,000 (original cos
    11·1 answer
  • Dell has been aggressively cutting their days of inventory. In the third quarter of 2009, Dell reported $952 million of inventor
    5·1 answer
  • What is the difference between a wholesaler and a retailer?
    11·2 answers
  • which of the following is a valuable source of supplier information? a. purchasing databases b. previous experience c. purchasin
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!