Answer:
The rate of return on the investment if the price fall by 7% next year is -22% which is shown below.
The price of Telecom would have to fall by $71.43($250-$178.57), before a margin call could be placed.
Lastly,if the price fall immediately,the margin price would $178.57 as shown below
Explanation:
Total shares bought=$40000/$250=160 shares
Interest on amount borrowed=8%*$20000=$1600
When the price falls by 7% the new price =$250(1-0.07)=$232.50
Hence rate of return=(New price*number of shares-Interest-total investment)/initial investor's funds
=($232.50*160-$40000-$1600)/$20000=-22%
Initial margin=investor's money/total investment=$20000/$40000=50%
maintenance margin=30%
Margin call price=Current price x (1- initial margin)/ (1- maintenance margin)
=$250*(1-0.5)/(1-0.3)
=$178.57
Answer:
The answer is: Stone can report $8,750 as deferred income tax liability
Explanation:
Deferred income tax liability: income tax owed by a business that is put off into future years because a difference exists between GAAP accounting (in this case book depreciation) and income tax accounting.
The deferred tax liability is based on the difference on depreciation. Since 20x9 is Stone Co.'s first year of operations, the depreciation difference in this year must equal the net future depreciation difference.
To calculate the deferred tax liability balance we take the difference in depreciation and multiply it by the future tax rate: $25,000 x 35% = $8,750.
Cds are time deposits that you can close before the term ends but might pay early penalty for withdrawing early. Cds vary with the financial institution. I would say a savings account
Answer:
Market analysis
Explanation:
A business plan is a document that shows the goals of a business and details the roadmap to achieve them. It has several sections, with each giving specific information about the business.
The market analysis part talks about the target clients. The sections give detailed data on the industry, including competitors, market performance, and prevailing trends. It describes customers in the target industry.
Answer:
30600 less 25 000 = 5600
increase in net income
Explanation
1400 units 1000 units
sales 224 000 160 000
(1400*160) (1000*160)
variable costs (106 400) (48 000)
(1400*76) (1000*48)
contribution margin 117 600 112 000
fixed costs (87 000) (87 000)
net operating income 30 600 25000
