Answer:
The correct answer is letter "D": may sell some of your securities to repay the margin loan.
Explanation:
A Margin Call is issued when the equity in a margin account falls below a certain level. In the U.S. this level is set by the Federal Reserve (Fed) Board "Regulation T". Many brokers have their margin requirements known as "house requirements" usually with maintenance levels of 30 to 40%.
When a margin account falls below the margin limit and the trader ignores this, the broker can sell some of the securities of the trader to cover the margin losses.
Answer:
Annual withdrawal= $57,032.02
Explanation:
Giving the following information:
Initial investment (PV)= $450,846
Interest rate (i)= 12.65%
<u>To calculate the annual withdrawal, we need to use the following formula:</u>
PV= Cf / i
Cf= annual cash flow
450,846= Cf / 0.1265
450,846*0.1265 = Cf
Cf= $57,032.02
Answer:
The correct answer is letter "B": the price is relatively unimportant in allocating resources.
Explanation:
Centrally planned economies or command economies are those managed by the government that dictates production quotas and distribution levels and determines prices. Private ownership is null in centrally planned economies since the government is the owner and distributor of land, labor, and capital.
<em>Allocation price is irrelevant when it comes to command economies since only those vital goods such as staples are paid attention.</em>
Answer:
The interest on investment of $9000 and $1000 is 5.41 % and 4.81% respectively.
Explanation:
Let i be the interest rate on $ 9000 investment, then
9000i + 1000(i -0.006) = $ 535
10,000i = 541
i = 5.41 % on investment of $ 9000.
than on $1000 investment interest = 5.41-0.6 = 4.81 %
Answer:
100 shirts
Explanation:
Borrowing from the contribution margin concept, the level where the marginal benefit is greater than total costs is the break-even point.
Break-even point = fixed cost / contribution margin per unit.
For this retailer,
Fixed costs are $500,
The contribution margin per unit = selling price- variable cost
=$10-$5
=$5
Break-even point
= $500/$5
= 100units