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
Answer:
The correct answer is letter "C": bans viewing by non-subscribers.
Explanation:
In economics, the free-rider problem arises when individuals refuse to pay their fair share or pay less for something others are paying. This situation occurs when individuals can consume a given resource without limits and when there is regulation over the resource consumption.
Thus, <em>Daleview is avoiding the free-rider problem in its TV cable service by setting bans to non-subscribers accounts.</em>
Answer:
falls, the company is less likely to buy the equipment
Explanation:
There is an inverse relationship between interest or discount rate and present values of an investment,in that a higher interest rates brings about lower present values and vice versa.
Higher interest rate means that the cost of borrowing to fund the purchase of equipment is high, hence less profitable as the impact of higher interest expense on the income statement is a lower net income.
As a result, the company is less likely to go ahead with the planned purchase as the investment from a funding perspective is value-maximizing.
Answer:
The real GDP will increase by $10 billion.
Explanation:
The MPS is given as 0.2.
The increase in government spending is $2 billion.
The horizontal supply curve means that the price level is constant.
The increase in real GDP will be
= 
= 
= 
= 
= $10 billion
