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kompoz [17]
3 years ago
10

The stock of Flop Industries is trading at "$37" You feel the stock price will decline, so you short 400 shares at an initial ma

rgin of 60 percent. If the maintenance margin is 30 percent, at what share price will you receive a margin call?
Business
1 answer:
Allushta [10]3 years ago
6 0

Answer:

$45.54

Explanation:

Given that,

Stock of Flop Industries is trading at $37

Initial margin = 60 percent (short 400 shares sale)

Maintenance margin = 30 percent

Amount received from short sale:

= shares short × Stock trading price

= 400 × $37

= $14,800

Initial deposit:

=  Amount received from short sale × Initial margin

= $14,800 × 60%

= $8,880

Account value = Amount received from short sale + Initial deposit

                        =  $14,800 + $8,880

                        = $23,680

Margin call price:

= Account value ÷ [short sale + (short shares sale × maintenance margin)]

= $23,680 ÷ [400 + (400 × 30%)]

= $23,680 ÷ (400 + 120)

= $23,680 ÷ 520

= $45.54

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<u>Explanation:</u>

The using of the Meta Tag is Permissible because the trade mark name is being used for a different product or service and it does not involve any kind of  trade mark infringement.

4 0
3 years ago
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When a company purchases another company and the purchase price is greater than the fair value of the net assets acquired, this
34kurt

Answer:

Goodwill

Explanation:

Goodwill is an intangible asset, reported on the balance sheet asset side. It is used yearly for the impairment tests.

When the company purchase another company and its purchase price is more than the fair value of the net asset so the excess amount would be called as a goodwill

The fair value of the net asset is come from subtracting the

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6 0
3 years ago
An investor purchases one municipal and one corporate bond that pay rates of return of 8% and 10%, respectively. If the investor
Alinara [238K]

Answer:

rate of return will be 8% and 8%

Explanation:

given data

municipal bond = 8%

corporate bond = 10 %

marginal tax = 20 %

solution

we know that here

Municipal bond no taxes are levied

hence after tax rate of return will be 8%

and

Corporate bond

after tax rate of return will be

rate of return   = 10% × ( 1 - 0.20 )

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5 0
3 years ago
Inflation is 14 percent. Debt is $4 trillion. The nominal deficit is $360 billion. What is the real deficit or surplus
DiKsa [7]

Answer:

Real Surplus is $200 billion

Explanation:

Inflation = 14%

Debt = $4 trillion = $4,000 billion

Nominal deficit = $360 billion

Real Deficit = Nominal deficit - (Inflation*Debt)

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= $360 - 560

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Hence, the answer is Real Surplus of $200 billion

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3 years ago
David, an Alabama resident, files suit in an Alabama court against QuickAds, an internet company based in Georgia that provides
Katena32 [7]

Answer:

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Explanation:

The Alabama court only has jurisdiction in actions that were performed within the boundary of the state of Alabama. Although David is a resident of Alabama, his law suit is likely due to actions carried out in Georgia where QuickAds the internet company is based.

Also QuickAds only contact with persons in Alabama has been through QuickAds passive advertising.

In this scenario the case can be tried in federal court because it can handle cases across state borders.

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3 years ago
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