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
Butoxors [25]
3 years ago
6

You short sold 500 shares of Jasper stock at $41 a share at an initial margin of 60 percent. What is the highest the stock price

can go before you receive a margin call if the maintenance margin is 40 percent?
Business
1 answer:
avanturin [10]3 years ago
5 0

Answer:

Px = \frac{[(N*P) +(N*P*M1]/N}{1+ M2}

And if we replace we have this:

Px =\frac{[(500*41) +(500*41*0.6]/500}{1+ 0.4}

Px= 46.857 \ approx 46.86

So then the highest the stock price can go before you receive a margin call if the maintenance margin is 40 percent is $ 46.86.

See explanation below.

Explanation:

For this case we define the following notation:

N= 500 represent the number of stocks for JAsper

P = 41 represent the stock price

M1 = 60% = 0.6 represent the initial margin

Px represent the highest stock price the variable of interest for this case

M2= 40% or 0.4 represent the mainteneance margin

We can find the value of Px with the following formula on this case:

Px = \frac{[(N*P) +(N*P*M1]/N}{1+ M2}

And if we replace we have this:

Px =\frac{[(500*41) +(500*41*0.6]/500}{1+ 0.4}

Px= 46.857 \ approx 46.86

So then the highest the stock price can go before you receive a margin call if the maintenance margin is 40 percent is $ 46.86.

You might be interested in
Chang, Inc.'s balance sheet shows a​ stockholders' equity-book value​ (total common​ equity) of ​$750 comma 500. The​ firm's ear
Artist 52 [7]

Answer:

The​ price/book ratio is 2.45

This price/book ratio indicates that the Chang, Inc company has 2.45 higher market value of the stock than the book value of the equity

Explanation:

For computing the price/book ratio, we have to apply the formula which is shown below:

= Market price of equity ÷ book value of equity

where,  

the market value of equity = firm's earnings per share × price/earnings ratio × number of outstanding common stock shares

= $3.00 × 12.25 × 50,000 shares

= $1,837,500

And, the book value of equity is $750,500

Now put these values to the above formula

So, the answer would be equal to

= $1,837,500 ÷ $750,500

= 2.45

This price/book ratio indicates that the Chang, Inc company has 2.45 higher market value of the stock than the book value of the equity

4 0
3 years ago
Which of the following characteristics describe Millennial employees, in general?
insens350 [35]

Answer:

B. Globally conscious.

Explanation:

Millenials are the generation of people born in the 80s and 2000s, and represent people who were born at a time when technology and the internet were strengthened, which caused a revolution in the form of social interactions around the world.

The internet revolutionized business, due to the speed in the exchange of information, it was possible for business to expand and integrate, which generated globalization, which is the interaction of businesses between countries in search of competitive and strategic advantages in the global market.

Therefore, it is correct to say that the generation of millennials are more globally aware employees, due to the fact that they have grown up in a cultural and social environment marked by the use of the internet and the availability of information, which makes them more aware about business. global interactions, multicultural interactions and more possibilities to understand the market and contribute to its development.

7 0
3 years ago
Poskey Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following
MrRa [10]

Answer:

\left[\begin{array}{cccccc}&Cost&Assembly&Setting Up&Other&Total\\wages&349,000&226,850&69,800&52,350&349,000\\Depreciation&290,000&101,500&58,000&130,500&290,000&Utilities&199,000&29,850&149,250&19,900&199,000&Total&838,000&358,200&277,050&202,750&838,000&\end{array}\right]

Explanation:

We mulitply each line by the stated percent of each activity

<u>for example</u>

Setting Up % x Utilities= Utilities cost assigned to setting up

199,000x 75% = 149,250

Assembly % Depreciation= Depreciation cost assigned to assembly

35% x 290,000 = 101,500

This process must be done to assign each portion of cost.

6 0
3 years ago
Which of the following is true of an unsecured loan?
Ilya [14]

The statement "The value of an item where the borrowers owned but they are not at the repossession risk" is to be true.

The unsecured loan is the type of loan in which there is no need for any type of collateral property.

The lender does not takes the assets of the borrower as the security but it gives the approval of an unsecured loan depends upon the creditworthiness of the borrower.

Examples are:

  • Personal loans.
  • Students loans.
  • Credit cards.

The following information related to unsecured loans is

  1. It does not for cars, houses, or any other large purchases
  2. In this, the collateral does not involve.
  3. It contains high interest.

Therefore we can conclude that,  option d is correct.

Learn more about the unsecured loan here: brainly.com/question/8347317

7 0
2 years ago
Read 2 more answers
A small Canadian firm that has developed some valuable new medical products using its unique biotechnology know-how is trying to
den301095 [7]

Answer:

Part a. Manufacturing the goods at home and let overseas sales managers handle the marketing.

Advantages  

  1. Can have a full authority in production activities.
  2. It is easy to set up a strategy and multiply the manufacturing.
  3. Having better regulator over human resources.
  4. The foreign sales agents will enhanced the understanding of European marketplaces.
  5. It lower the exit costs if product fails.

Disadvantages

  1. Having lack of information in European pharmaceutical procedures.
  2. The foreign agents may damage the brand name if not prudently handled.
  3. Additional costs in delivery of the products.

Part b. Manufacture the products at home and set up a wholly owned subsidiary in Europe to handle marketing.

Advantages

  1. Having full control in manufacturing activities.
  2. It is easy to set up a strategy and multiply the manufacturing.  
  3. Having better regulator over human resources.
  4. The brand name will not be damaged since the marketing is controlled by the same company

Disadvantages

  1. Utilization of extra resources to be consumed on marketing
  2. Having lack of information in European pharmaceutical procedures.
  3. Additional costs in delivery of the products  
  4. Having lack of information in European pharmaceutical procedures  

Part c. Enter into a strategic alliance with a large European pharmaceutical firm. The product would be manufactured in Europe by the 50/50 joint venture and marketed by the European firm

Advantages

  1. The risk is distributed among the firms.
  2. No additional delivery cost included.
  3. Knowledge of European organization will be valuable in
  4. understanding guidelines and advertising in European markets.

Disadvantages

  1. Having less control in manufacturing activities  
  2. Shared of the profit among the partners.
  3. Moderate level of exit cost is included.
  4. Additional firm may harm the brand image.

7 0
3 years ago
Other questions:
  • Describe how price affects decisions that consumers make
    15·1 answer
  • Is there a trade-off between standardization and innovation? how are the two related in most companies?
    13·1 answer
  • In a manufacturing business, the ________ transforms finished goods into cash.
    15·1 answer
  • The rent for a one-bedroom apartment in Southern California follows the normal distribution with a mean of $2,200 per month and
    5·1 answer
  • The given statements are about monopolistic competition. Indicate whether each statement is true or false. A monopolistically co
    12·1 answer
  • Rooftop International, Inc. buys insurance against host government takeover when investing in foreign countries. This is an exam
    13·1 answer
  • Please answer asap NO LINK PLS
    13·1 answer
  • HELP!
    11·2 answers
  • Question 8 of 10
    12·1 answer
  • NASA is conducting an experiment to find out the fraction of people who black out at G forces greater than 6. Step 1 of 2: Suppo
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!