Answer:
b. the Federal Reserve System.
Explanation:
Initial margin refers to the deposit made by an investor with a broker, in order to open a margin account. The purpose of initial margin is security and collateral to ensure enough availability of cash in the trading account of the investor.
For instance an investor wants to purchase 4000 shares priced at 15$. In this case, he is supposed to deposit 50% of $60,000 i.e $30,000. The remaining $30,000 is contributed by the brokerage firm, regarded as borrowings on which the investor pays interest.
The initial margin limit is fixed by the Federal Reserve System.
Answer:
(a) $4.08
(b) $51.03
Explanation:
Constant growth rate for earnings:
= (EPS for any year ÷ EPS for the previous year) - 1
= (8.40 ÷ 8.00) - 1
= 0.05
= 5%
(a) EPS for 2016 = EPS for 2015 × (1 + 5%)
= 9.72 × 1.05
= $10.21
Dividend for 2016 = 40% × EPS for 2016
= 40% × 10.206
= $4.08
(b) Stock Price at the beginning of 2016:
= Dividend for 2016 ÷ (Required rate of return - Constant growth rate)
= 4.0824 ÷ (0.13 - 0.05)
= $51.03
Answer:
Increased publicity
Explanation:
if a judge overturns a case from a trial court and rejects precedent, the judge should get publicity for her decision and modification of the precedent so that it becomes a new way or basis of judging similar cases. In other words if judge Karen decides that the precedent before her to judge the case is outdated as a result of technological changes, she will decide on the case before her based on what she believes the precedent should reflect(new technologies) and this becomes the new basis for judging all such cases and as a result should be publicised for other judges to take note
Answer:
37.25%
Explanation:
Average total common stockholders' equity:
= (Beginning common stockholders' equity + Ending common stockholders' equity) ÷ 2
= ($530,000 + $490,000) ÷ 2
= $510,000
Return on Equity = Net income ÷ Average total common stockholders' equity
= $190,000 ÷ $510,000
= 0.3725
= 37.25%
Answer:
24%
Explanation:
The computation of the average rate of return is shown below;
As we know that
The Average rate of return = Net income ÷ Average investment
where,
Net income is
= (Selling price per unit - totat cost per unit) × additional units sales
= ($212 - $200) × $4,500 units
= $54,000
And, the average investment is
= (cost price + equipment) ÷ 2
= ($418,500 + $31,500) ÷ 2
= $225,000
So, the average rate of return is
= $54,000 ÷ $225,000 × 100
= 24%
