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Vaselesa [24]
3 years ago
10

You invested $5000 of your own money and borrowed $5000 from your broker to purchase shares of a company trading at a share pric

e of $2. You paid 10% interest on your borrowed money for one year. You sold the stock one year later for $1.40. How much money in total did you lose on this transaction including the interest you paid?
Business
1 answer:
sergiy2304 [10]3 years ago
7 0

Answer:

lose $2.000

Explanation:

with the 5000 you bought 2500 shares (5000/2)

Then the moment you decide to sell them your price drops.

2500 shares for $ 1.40 = $ 3500

which means a loss of = $ 1500

also, interest on the loan must be paid

$ 5000 10% = $ 500

Total loss of operations = 1500 + 500 = $ 2,000

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Answer:

The correct answer is option a.

Explanation:

The monthly total revenue is $5,000.

The marginal cost of producing 19th, 20th and 21st unit is $200.

Laura will earn profit if the price is able to cover marginal cost.

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So we see that the price is able to cover marginal cost till 21st units, so Laura should produce more than 20 units and go on producing till price becomes equal to marginal cost.

4 0
3 years ago
If Project Repat were to acquire another firm that makes or sells similar products in similar markets, it would be an example of
SVEN [57.7K]

Answer:

b. Horizontal merger.

Explanation:

Project Repat is merging with a company that produces similar products to its own markets them in similar markets as well, this is an example of a horizontal merger that results in increased synergies between the similar firms and a greater market share opportunity.

Vertical mergers are usually not in the same industry. They would either be with the suppliers of Project Repat or customers who retail Project Repat's products.

Conglomerate is an example of diversification and usually the merging firms have different operations.

There are no information of clashes of any sort within the two  merging companies so it is uncertain whether this is a hostile takeover.

Hope that helps.

3 0
3 years ago
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Answer:

The $300 of out of pocket expense exceeds the MSRB political contribution limit and will result in the municipal securities firm being banned as an underwriter for that issuer for 2 years.

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The municipal securities firm is is underwriter for municipal issuer. The volunteers have paid $300 out of pocket but they are not entitled to make contribution to the campaign. This will result the firm being banned for two years as an underwriter for the issuer.

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