A customer has a long margin account with no SMA. if the market value of the securities rises, sma will increase by 50% of the increase in market value.
SMA balances are increased in value by cash deposits in brokerage accounts. The SMA also retains interest and dividend payments from long positions and earnings from closing security positions. Clients can use SMA funds to purchase additional securities for their margin accounts.
The SMA of long-margin accounts decreases when the market value decreases. The long account's SMA volume only decreases as it is used and is not affected by market value declines.
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Answer:
<em>The solution is explained in the explanation section below</em>
Explanation:
Solution:
(a) <em>In the economy there exist 100 workers. the wage of reservation to take risky job for worker 1 is $1 and $2 for worker -2. only 10 jobs is seen as risky.</em>
<em>The curve of supply is shown as upward which starts from 1, because the price of reservation for the first worker is 1 and 2 is for the second worker and it keeps going on like that.</em>
<em>The demand curve is seen as elastic in a perfect form, due to the fact that there are only 10 risky jobs.</em>
<em>The 10th worker price is $10, because is wage differential is $10</em>
<em>(b) The worker's altitude towards taking risky jobs has changed, because of the advertisement. the wage reservation is -10$ for the first worker and -$9 for the second worker.</em>
<em>Th jobs seen as risky is available are only 10</em>
<em>However, as a result of the campaign advertisement, the curve of supply moves down and the market equilibrium gets is gotten when the wage differential is -$1. most people on the daily basis dislike risk, but the market determines those risky jobs that will pay less than the safe ones. </em>
Answer:
Bob wants to gain extra knowledge by joining a professional organization - professional growth and development.
Libby seeks money for research in a particular field- scholarship
Joseph wants to know the latest legislation pertaining to his industry-certification
Debby wants to work as an intern under the guidance of an expert in her field -mentoring
Chad likes to meet with members of his fraternity to get a better perspective of their work - Networking
Explanation:
Bob wants to gain extra knowledge by joining a professional organization - professional growth and development. This is because any attachments to professional organization is always a professional development.
Libby seeks money for research in a particular field- scholarship. Because when you ask for money for studies, research or a university based project, including PhDs, is always either a scholarship or a grant.
Joseph wants to know the latest legislation pertaining to his industry-certification. Any formal studies in corporate or industry is a certification, just like when you study in school/university you get degree.
Debby wants to work as an intern under the guidance of an expert in her field -mentoring. Whenever anyone seeks help from an expert, supervisor or managers, the person who helps is a mentor.
Chad likes to meet with members of his fraternity to get a better perspective of their work - Networking. Meeting and icebreaking is a way to networking, to socialize and know more.
Answer:
b. 5.75
Explanation:
Times Interest earned ratio is the measure of ability of a company to pay the interest on its debts. It is the ratio of earning before interest and tax and interest expense as below.
Times Interest Earned Ratio = Earning before interest and tax / Interest Expense
Times Interest Earned Ratio = $86,250 / $15,000
Times Interest Earned Ratio = 5.75 times
Answer:
The amount of cost from Pool A that is allocated to LQ6 is $7,802.
Explanation:
Since Pool A includes all variable overhead and uses direct labor as the allocation base, we can obtain the following from the question:
Direct labor = $82,056
Variable overhead = $146,362
Number of labor hours used by LQ6 = 162
Factory's labor costs per hour = $27
Therefore, we have:
Factory's labor cost of LQ6 = Number of labor hours used by LQ6 * Factory's labor costs per hour = 162 * $27 = $4,374
Variable over allocated to LQ6 from Pool A = (Factory's labor cost of LQ6 / Direct labor) * Variable overhead = ($4,374 / $82,056) * $146,362 = $7,801.83518572682
Rounding to whole number of $ as required, we have:
Variable over allocated to LQ6 from Pool A = $7,802
Therefore, the amount of cost from Pool A that is allocated to LQ6 is $7,802.
