Answer:
b. Call for $1,500
Explanation:
According to the scenario, computation of the given data are as follow:-
We can calculate the amount of margin call by using following formula:-
Loss of today = future contracts based total bushels × total contract × (settlement cost per bushels - future contract price per bushels)
= 5,000 cents × 6 × (390 cents - 385 cents)
= 5,000 cents × 6 × 5 cents
= 150,000 cents
And we know that
100 cents = 1 dollar
so,
150,000 cents ÷ 100 =$1,500
Initial margin $878 per future contract and maintenance margin $650 per contract, Margins of both are less than loss .So we have to pay $1,500 in initial margin.
According to the analysis, we will receive $1,500 margin call.
Therefore option (B) call for $1,500 is correct.
The author used his word choice to darken the tone of this excerpt.
Answer:
18.24
Explanation:
Sustainable growth rate is the rate of growth a company can afford in the long term
sustainable growth rate = retention rate x ROE
b = retention rate. It is the portion of earnings that is not paid out as dividends
Retention rate = 1 - payout ratio =
payout ratio = dividend / net income
retention rate = 1 - $44,640 / 72,000 = 0.38
Return on equity = net income / average total equity
= 72,000 / 150,000 = 0.48
g = 0.48 x 0.38 = 18.24%
Answer:
times interest earned= 9.49
Explanation:
Giving the following information:
Ron Landscaping's income statement reports net income of $75,200, which includes deductions for interest expense of $13,200 and income taxes of $36,900.
First, we need to calculate the income before taxes and interest expense:
EBIT= 75,200 + 13,200 + 36,900= $125,300
Now, to calculate the times interest earned we need to use the following formula:
times interest earned= EBIT/ interest expense= 125,300/13,200= 9.49
Is there answer choices if not
I think it is Design.
