Answer:
No of stock = 1100
Price of Stock = 29
Short sale = 31900
Initial Margin % = 55%
Initial Margin = 17545
Total value = 49445
The earnings of the sale is 31900, which is deposited in our account for a total account value of $49,445 (31900+55%)
Maintenance Margin = 40%
Margin Call Value = 49445/ (1+0.4)
Margin Call Value = 35317.86
Price per share = 35317.86 / 1100
Price per share = 32.11
So a margin call will be triggered when the price of the shorted security rises to $32.11
Margin Call Price = 32.11
Account Equity = 32.11*1100
Account Equity = 35318
Answer:
Project's WACC = 12.95%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure of a firm may contain one or all of the following components - debt, preferred stock, common stock. For a firm with two components in capital structure in form of debt and equity, the WACC is calculated as follows,
WACC = wD * rD * (1+tax rate) + wE* rE
Where,
- wD and wE are the weights of debt and equity in the total capital structure
- rD and rE are the cost of each component
- We multiply the cost of debt by 1 - tax rate to calculate the after tax cost of debt
We must first determine the weight of debt and equity in total capital structure.
A debt to equity ratio of 0.64 means 0.64 debt for every 1 dollar of equity. The total assets are made up of debt + equity. So, total assets are 0.64 + 1 = 1.64
Weight of debt = 0.64 / 1.64 = 16/41
Weight of equity = 1 / 1.64 = 25/41
WACC = 16/41 * 0.053 + 25/41 * 0.149
WACC = 0.1115 or 11.15%
The projects cost of capital is 1.8% more than the company's WACC.
So, the project's cost of capital is,
Project's WACC = 11.15% + 1.8%
Project's WACC = 12.95%
The supply curve slopes upward represents increasing marginal costs with an increase in production.
<h3>Why does the supply curve slopes upward?</h3>
Because businesses would typically be more motivated to produce a good as its price increased, the supply curve slopes higher. Additionally, because companies are effective and would use up the cheapest manufacturing inputs first, the cost of production tends to grow as output increases.
<h3>What are the reasons why the supply curve increases or decreases?</h3>
The market becomes unbalanced as a result of a change in supply shifting the supply curve, which is then corrected by a change in pricing and demand. The supply curve changes right when the change in supply increases, while it shifts left when the change in supply decreases.
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A person with a total tax liability of $4,350 and withholding of federal taxes of $3,975 would <u>owe $375</u>.
Legal responsibility is something a person or agency owes, commonly a sum of money. Liabilities are settled through the years thru the switch of economic benefits along with cash, items, or offerings.
Liability is described because the kingdom of being answerable for something or something that someone is liable for. An instance of legal responsibility is someone having to pay again scholar loans. An instance of liability is payment for an automobile twist of fate.
Belongings are the gadgets your business enterprise owns which can provide future monetary benefit. Liabilities are what you owe other parties. In quick, assets positioned to cash in your pocket, and liabilities take cash out!
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Answer: these products failed
New Coke. New Coke is often cited as the ultimate example of one of the most notorious product flops and brand missteps of all time. ...
Crystal Pepsi. Pepsi introduced this clear cola in the early 1990s. ...
Arch Deluxe. ...
Ben-Gay Aspirin. ...
The Zune.
Explanation:
