A customer has a long margin account with no SMA. if the market value of the securities rises, sma will increase by 50% of the increase in market value.
SMA balances are increased in value by cash deposits in brokerage accounts. The SMA also retains interest and dividend payments from long positions and earnings from closing security positions. Clients can use SMA funds to purchase additional securities for their margin accounts.
The SMA of long-margin accounts decreases when the market value decreases. The long account's SMA volume only decreases as it is used and is not affected by market value declines.
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When the recovered copper product was washed repeatedly with water, the compounds that were removed during those washes are : Aluminum III ions and CuSO4.
The recovered copper product was washed out with ethanol because it has low evaporation point.
Answer:
(4) The the actual (or real) free cash flow (after inflation rate is considered)
2021 (First Year): $980.39
2022 (Second Year): $961.17
(5) Present value of the investment (Investment year is 2020) is $1,735.54
Explanation:
Free cash flow in 2021: $1000
Free cash flow in 2022: $1000
WACC (discounting rate): 10%
(4) The the actual (or real) free cash flow (after inflation rate is considered) in 2021 (First Year) and 2022 (Second Year):
FCF in 2021 after considering inflation = $1000/(1+2%) = $980.39
FCF in 2022 after considering inflation = $1000/((1+2%)^2) = $961.17
(5) Present value of the investment (Investment year is 2020)
PV = Cash flow in year 1/(1+ discounting rate) + Cash flow in year 2/(1+ discounting rate)^2
= 1000/(1+10%) +1000/((1+10%)^2)
=1,735.54
Answer:
For 8,500 units, proposal A provides a higher income ($3,000).
Explanation:
Giving the following information:
Proposal A:
Fixed cost= $50,000
Unitary cost= $12
Proposal B:
Fixed cost= $70,000
Unitary cost= $10
<u>We need to choose the proposal with the higher income if 8,500 units are produced.</u>
Proposal A:
Net income= 8,500*(20 - 12) - 50,000
Net income= $18,000
Proposal B:
Net income= 8,500*(20 - 10) - 70,000
Net income= $15,000
For 8,500 units, proposal A provides a higher income ($3,000).