Answer:
C) $5,000
Explanation:
Since the price of the stocks first rose to $50, the account's equity was $50,000.
The SMA balance was = ($50,000 x 1/2) - $20,000 = $,5000
The SMA balance acts like a stabilizer and cannot be taken away even if the price of the stocks fall slightly. The price of stocks must fall 25% in order for the SMA to be withdrawn.
The investor's equity decreased = equity - margin requirement = $39,000 - $20,000 = $19,000, but the amount that the investor can borrow (SMA balance) will remain the same at $5,000.
Answer:
$2.73
Explanation:
<em>Diluted Earnings Per Share = Earnings Attributed to Common Stockholders ÷ Weighted Average Number of Common Stockholders Outstanding</em>
where,
Earnings Attributed to Common Stockholders = $420,000
and
Weighted Average Number of Common Stockholders Outstanding = 110,000 + (11,000 x 4) = 154,000
therefore,
Diluted Earnings Per Share = $420,000 ÷ 154,000 = $2.73
Conclusion
Rudyard's diluted EPS is $2.73
The answer is a, a cash reserve
Answer:
<u>e. owners of sole proprietorships can lose all their personal assets if the business is sued or fails.</u>
Explanation:
<em>Remember</em>, in a sole proprietorship form of business ownership, the owner's personal assets are not usually separated from the business since the business isn't viewed as a separate legal entity.
Hence, in a case where the business incurs liability or sued/fails, <u>the owner's personal assets can be targeted in the lawsuit and may lead to loss of </u><u>all their personal assets.</u>