Reasons for the formation of partnership

Dee Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $40 per share. She borrows$4,000from her bro

levacccp [35]

Answer:

A. The stock is purchased for $40 x 300 shares = $12,000.

Given that the amount borrowed from the broker is $4,000, Dee's margin is the initial purchase price net borrowing: $12,000 - $4,000 = $8,000.

B. If the share price falls to $30, then the value of the stock falls to $9,000. By the end of the year, the amount of the loan owed to the broker grows to:

Principal x (1 + Interest rate) = $4,000 x (1 + 0.08) = $4,320.

The value of the stock falls to: $30 x 300 shares = $9,000.

The remaining margin in the investor's account is:

Margin on long position = "Equity in account " /"Value of stock"

= "$9,000 － $4,320" /"$9,000" = 0.52 = 52%

Therefore, the investor will not receive a margin call.

C. Rate of return = "Ending equity in account － Initial equity in account" /"Initial equity in account"

= "$4,680 － $8,000" /"$8,000" = - 0.4150 = - 41.50%

7 0

3 years ago

During an exit interview, a manager discovers that the reason an employee is resigning is because of unlawful harassment from a

natka813 [3]

Answer:

See explanation below for answer.

Explanation:

The manager should embark on an investigation, in order to get to the bottom of the matter. The accusation must be treated seriously in order to make sure that the root cause of the problem is established, this will be done with the details of the harassment that the employee provides.

Also, the witnesses that the employee has mentioned must be questioned in order to establish the facts of the issue. The matter must be treated with the utmost urgency, in order to stop the issue from repeating itself, because this will affect the productivity of the affected employees if left unchecked.

7 0

3 years ago

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Prepare the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted eac

bekas [8.4K]

Answer:

Answer for the question:

Prepare the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. (Round "Direct labor time per unit (hours)" and "Direct labor cost per hour" answers to 2 decimal places.)

is explained in the attachment.

Explanation:

Download pdf

7 0

3 years ago

The business earns $700 of consulting revenue. How would these earnings affect the total equity of a business?a. Liabilities are

Sliva [168]

Answer:

d. Revenues increase, so total equity is increased.

Explanation:

Consulting Revenue of $700 will increase the total revenue of the business and total equity of the business as the revenue will increase the net profit which will ultimately be added to the equity balance. Increase in revenue will result in increase in equity and Increase in expenses will decrease the equity.

3 0

2 years ago

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Floors n’ More, Inc., hires Gordon to renovate Floors n’ Mores showroom. Gordon submits plans that Floors n’ More approves. Gord

gogolik [260]

Answer:

Yes Gordon can sue Floors n' Mores for the settlement of the contract keeping in mind that Gordon has made partial completion of the contract. Full payment would be determined based on the completion of the total work in line withe the plans submitted when the contract was signed

Explanation:

In order to understand the scenario in case if Gordon wants to sue Floors n Mores they can only be compensated for the amount of project completion in line to the expectations that matches to Floors n More.

For Example if 75% of the work is in line with the expectation of Floors N More then Gordon should be paid total amount payable multiply by 75%.

Usually in such cases if the contract is fulfilled to certain extent it is preferred to close the contract based on the %age of completion because major reconstruction, buying of fixtures and furniture was executed. Hence major risks and rewards were transferred to Floors n Mores.

4 0

3 years ago