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
solmaris [256]
3 years ago
13

You short sold 1,100 shares of stock at a price of $29 and an initial margin of 55 percent. If the maintenance margin is 40 perc

ent, at what share price will you receive a margin call? What is your account equity at this stock price?
Business
1 answer:
Margaret [11]3 years ago
6 0

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

You might be interested in
Answer the question on the basis of the given supply and demand data for wheat. Bushels Demanded Per Month Price Per Bushel Bush
Flura [38]

Answer:

C. farmers would not be able to sell all their wheat. 

Explanation:

At a price of $4, quantity supplied exceeds quantity demanded. Quantity supplied is 73 while quantity demanded is 50. There is an excess supply over demand. Therefore, farmers would not be able to sell all their wheat.

Equilibrium price is $2. This is where quantity supplied equals quantity demanded.

I hope my answer helps you

6 0
3 years ago
EB1. 
aleksandr82 [10.1K]

Answer:

$110

Explanation:

The contribution margin per unit refers to the revenue available per unit to pay for fixed costs and profits.

The formula for contribution margin is selling price per minus variable costs per unit.

, i.e., contribution margin = selling price -variable costs

=$150-$40

=$110

8 0
3 years ago
If someone give gift to his wife of 255000 how much is taxable
padilas [110]
I do believe that gifts to a spouse are exempt from any gift tax. So $0 is taxable.
8 0
3 years ago
Read 2 more answers
Symon's Suppers Co. has announced that it will pay a dividend of $4.23 per share one year from today. Additionally, the company
sweet-ann [11.9K]

Answer:

$68.23

Explanation:

In this question, we apply the dividend growth rate model which is shown below:

The computation of the current share price is shown below:

= (Current year dividend) ÷ (Rate of return on company stock - growth rate)

= ($4.23) ÷ (10.6% - 4.4%)

= ($4.23) ÷ (6.2%)

= $68.23

We simply find out the ratio between the current year dividend per share and difference between the rate of return and the growth rate

6 0
3 years ago
Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 5 bars and the price is Rs.600 per ba
musickatia [10]

Answer:

An apple, potato, and onion all taste the same if you eat them with your nose plugged

Explanation:

4 0
3 years ago
Other questions:
  • Which of the following is an example of capital substitution? A. having robots on an assembly line instead of workers B. trade t
    5·1 answer
  • What are 3 ways through which you might obtain employment experiences
    12·1 answer
  • The following is the Bravo Unlimited adjusted Trial Balance.
    13·1 answer
  • Sarah and stephanie are determined to make their business plan look as professional as possible. in order to make sure it's orga
    8·1 answer
  • A consumer is said to be indifferent between two consumption bundles _________.a. when the consumer doesn't care about his or he
    12·1 answer
  • A foreign company has offered to buy 75 units for a reduced sales price of $320 per unit. The marketing manager says the sale wi
    11·1 answer
  • They are chasing a dog convert into passive voice​
    13·1 answer
  • The return on total assets is computed by dividing net sales by average total assets. net income by ending total assets. net inc
    6·1 answer
  • A market-sharing pact negotiated by trading partners that results in voluntary quotas applied to exports in order to protect the
    5·1 answer
  • quizlet The Electronic Frontier Foundation is critical of media companies for their efforts to __________.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!