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BabaBlast [244]
3 years ago
13

You purchased 100 shares of IBM common stock on margin at $70 per share. Assume the initial margin is 50% and the maintenance ma

rgin is 30%. Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin.
Business
1 answer:
Misha Larkins [42]3 years ago
4 0

Answer:

$50

Step by Step Explanation:

100 shares × $70 = $7,000

$7,000 × 0.5 = $3,500 (loan amount)

0.30 = (100P −$3,500)/100P

0.30×100P= 30P

30P = 100P −$3,500

30P- 100P= -70P

−70P = −$3,500

-3500/-70P = $50P

P = $50

The stock price level someone would get a margin call Assuming the stock pays no dividend is $50

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3 years ago
Seth and Rachel have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership i
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Answer:

D. $8,000.

Explanation:

*Net loss is considered as the amount to be allocated between partners on equal sharing ratio. Otherwise the net allocated amount will be 76,000 ( -16000-5000-10000-27000-18000) net loss and Seth's share will be -38,000 (76000/2) . Question has no option of this amount.

                                          Statement of Partners Equity

                                          For the Year end MM-DD-YY

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It should be noted that an inference simply means the conclusion that can be deduced from the information given.

In this case, the inference illustrates that the true statement about comparative intelligence is that it compares a plantiffs fault with a defendant's and reduces the damage award proportionally.

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