1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Yanka [14]
3 years ago
10

Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams from the previous question. The initial marg

in requirement was 50%. (The margin account pays no interest.) A year later, the price of Internet Dreams has risen from $40 to $50, and the stock has paid a dividend of $2 per share. (LO 3-4)
a. What is the remaining margin in the account?

b. If the maintenance margin requirement is 30%, will Old Economy receive a margin call?

c. What is the rate of return on the investment?
Business
1 answer:
Molodets [167]3 years ago
4 0

Answer:

a) 8,000

b) Yes

c) -60%

Explanation:

a) 8,000

b) Yes

c) -60%

) 8,000

a.the trader puts up=20000(1000*50%*40)

he lost $10000(1000*$10)

if he trader pays $2000 in dividend

the remaining margin=20000-10000-2000

$8000

b.) margin rate=equity /liability

8000/50000*100%=

16% , so we have a margin call

c.Equity decreases from 20000 to 8000 in 1 year

return= -12000/20000=-0.60

=-60%

You might be interested in
Fernando's favorable attitude toward capital punishment began to change when he wasasked to offer arguments opposing it in a cla
LenaWriter [7]

Answer:

B) cognitive dissonance

Explanation:

According to my research on studies conducted by various psychologists, I can say that based on the information provided within the question his attitude change is best explained by cognitive dissonance. This is defined as the state of having inconsistent thoughts, beliefs, or attitudes, especially as relating to behavioral decisions and attitude change. Which is exactly what Fernando is experiencing.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
Parker Corporation has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply ma
AnnyKZ [126]

Answer:

Unitary cost= $62.5

Explanation:

Giving the following information:

Predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the year, manufacturing overhead and direct labor-hours for the year were estimated at $50,000 and 20,000 hours.

Materials costs on the job totaled $4,000 and labor costs totaled $1,500 at $5 per hour.

First, we need to determine the allocated MOH:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 50000/20000= $2.5 per direct labor hour

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base= 2.5* (1500/5)= $750

Total cost= 4000 + 1500 + 750= $6,250

Unitary cost= 6250/100= $62.5

3 0
3 years ago
A store manager for Kroger noticed that several of his regular customers have stopped coming to his store. He also noticed that
sergiy2304 [10]

Answer: True- An uncontrollable change in the marketing environment

Explanation:

 According to the given question, The manager of the store is noticed that the regular customer of his store is reducing day by day and the customers starts shopping from Walmart super-center.

So, the main  fundamental marketing problem is illustrated based on the given scenario is that an uncontrollable change in marketing environment.

An uncontrollable factors basically influencing the various types of organizational factors such as performance, demographics and the technological factors.

 Therefore, The given answer is correct.

6 0
3 years ago
Read 2 more answers
As a contemporary manager, your employees will perceive that their opinions are more valued if: you provide settings where emplo
erma4kov [3.2K]

Answer:

 you provide settings where employees have the opportunity to converse with all levels of management.

Explanation:

In simple words, employees feel motivated and values when they fell involved in the decisions inside the organisation, as these decisions affects them too.

    Generally, the core decisions in any organisation are taken by top managers but they too are dependent on lower level managers for the data they receive. Hence, a network should be set for employees so they can give their suggestions to  all levels of managers.

6 0
3 years ago
Sasha works for a large corporation, and sometimes, she finds it difficult to see how she fits into the corporate picture. Howev
FinnZ [79.3K]

Answer:

C. It can boost employee productivity.  

Explanation:

Sasha's company decision to establish an employee stock ownership plan has the potential benefit of boosting employee productivity because staff members and people in general are motivated by rewards.

Employee stock ownership plan is a staff reward scheme where a company's employees are awarded shares of the company they work for, hence they become both staff and shareholders of that company.

Sometimes these plans are futuristic, they are awarded at a certain date in future if the company achieves certain goals. Hence the productivity of employees are boosted in the bid to boost the company's performance and achieve their share rewards

8 0
3 years ago
Other questions:
  • You might have heard your grandmother say, "when i was your age, candy bars cost a nickel." like candy bars, the price of fast f
    8·1 answer
  • The U.S. preference for __________ economic policies helps to explain why we have a smaller and more limited government than do
    8·1 answer
  • Because nonindustrial economies can have features of both horticulture and agriculture, it is useful to discuss cultivators as b
    10·1 answer
  • You purchased a share of stock for $29. One year later you received $2.40 as dividend and sold the share for $28. Your holding-p
    7·2 answers
  • _is when there is temporarily not enough of something
    10·1 answer
  • The measure of a​ company's ability to collect cash from its customers who purchase on account is the A. accounts payable turnov
    6·1 answer
  • The mean of a set of data is 5.07 and its standard deviation is 3.39.
    9·1 answer
  • (A bond forward) A certain 10-year bond is currently selling for $920 A friend of yours owns a forward contract on this bond tha
    9·1 answer
  • Help with the a bove questions​
    6·1 answer
  • What is the financial impact on a company when a customer returns a product for a refund?
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!