Answer:
Weight of stock A = 60.33%
Weight of stock B= 39.66%
Explanation:
Stock A has 134 shares that is sold at $44
Stock B has 114 shares that is sold at $34
The total market value of stock A can be calculated as follows
= 134×44
= 5,896
The total market value of stock B can be calculated as follows
= 114×34
= 3,876
Total value of both stocks = 5,896+3,876
= 9,772
Therefore the weights of the portfolio can be calculated as follows
Weight of stock A = 5896/9772
= 0.603×100
= 60.33%
Weight of stock B
= 3876/9772
= 0.3966×100
= 39.66%
Answer:
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net income $178,150
Adjustment made:
Add : Depreciation expense $36,430
Add: Loss on disposal of plant assets $5,190
Less: Increase in accounts receivable -$16,500
Less: Increase in prepaid expense -$3,970
Add: Increase in accounts payable $18,040
Total of Adjustments $39,190
Net Cash flow from Operating activities $217,340
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: Is useful to managers in planning and decision making.
Explanation:
The Contribution approach to the income statement helps the company understand better the behaviour of it's variable and fixed assets because the Contribution Margin approach first subtracts variable costs from revenue and then subtracts fixed costs.
This allows the company to know which of the costs are more taxing on the company thereby enabling the company to know which to work on. It is therefore useful to managers in planning and decision making.
When the price of a good increases, the quantity demanded decreases. When the price of a good decreases, the quantity demanded increases.