All categories

3 years ago

A customer buys 100 shares of ABC at $17 as the initial transaction in a new margin account. The customer must deposit:______

Business

1 answer:

Elena L [17]3 years ago

3 0

Answer:

$1,700

Explanation:

Although the minimum equity to open a long margin account is $2,000. However, this does not apply if the securities in the account are paid fully.

It will amount to potential loss if a customer is asked to deposit more than 100% when buying. Since the customer wants to buy 1,700 of stock, it means that 100% or $1,700 (100 shares × $17) must be deposited.

You might be interested in

The purpose of the cash flow statement is to:

scZoUnD [109]

Simplify the following expression: 4x + 5y – 2x – 3y + 2z *c

8 0

2 years ago

The following amounts were taken from the financial statements of Ando Company: 2017 2016 Total assets $800,000 $1,000,000 Net s

aleksandr82 [10.1K]

Answer:

35 times

Explanation:

The price-earnings ratio is the financial ratio that compares the market price of a share with its earnings in order to determine whether the share gives earnings that makes it a good buy.

Price-earnings ratio=market price per share/earnings per share

market price per share for 2017 is $42

earnings per share=net income-dividends/average common stock outstanding

net income is $108,000

dividends is nil

average number of common stock is 90,000

earnings per share=$108,000-$0/90,000=$1.2

price earnings ratio=$42/$1.2=35 times

6 0

3 years ago

Suppose winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. one

DedPeter [7]

Economic profit is calculated as:

Economic profit = Total Revenues – Total Cost

Total cost both includes explicit and implicit cost. In this case, the explicit cost is $8,000 while the implicit cost is $64,000. Explicit cost is a direct payment made to run the business while implicit cost is the opportunity as accountant that is lost. Therefore,

Economic profit = $150,000 – ($8,000 + $64,000)

Economic profit = $78,000

6 0

3 years ago

Golden Harvest is a restaurant located inside a five-star hotel. It caters mainly to customers who are concerned about quality d

Nikolay [14]

D. A premium rooftop restaurant in the same city will be a part of Golden Harvest's strategic group.

Explanation:

A 5 Star Hotel is a hotel that provides a luxury service to its customers through its operation. It is operated to serve their guest at high level. The materials, tables and each and everything used in the five-star hotel are set with high quality. They provide utmost care to their guest.

In the above scenario, Golden Harvest is the restaurant that is operated inside a five-star hotel. They provide quality dining to their customers. The customers visiting the restaurant expect only the quality and they don’t bother about the prices.

This shows that a premium rooftop restaurant in the same city will be a part of Golden Harvest’s strategic group.

3 0

3 years ago

Suppose Cook Plus manufactures cast iron skillets. One model is a 10-inch skillet that sells for $ 22. Cook Plus projects sales

amid [387]

Answer:

Production budget = 835

Explanation:

The production budgeted for a particular period is the expected units to be produced after adjusting the sales budget figures for opening and closing inventories.

Production = Sales budget + closing inventory - opening inventory

Inventory at the end of July = 40%×650= 260

Opening inventory = 75

Sales budget = 650

Production budget = 650+ 260 - 75= 835

Production budget = 835

3 0

3 years ago