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boyakko [2]
3 years ago
15

Nancy checks her margin account and notices she has an SMA balance in her account. A 10% stock dividend was declared this mornin

g on one of the companies she had purchased on margin. She asks her RR how this will affect her SMA balance. How should the RR respond?
Business
2 answers:
baherus [9]3 years ago
7 0

The RR should respond that her SMA balance will not include the dividend. When you have a margin account, any dividends declared have no effect on the SMA account until the margin loan is paid back. A margin account is essentially a loan from your brokerage firm. That loan must be paid off first before you collect any balances.

hjlf3 years ago
3 0

Answer:

Dividend declare has no impact on the SMA. RR would respond the following way.

Explanation:

SMA is known as “Special Memorandum Account”. It is simply a line of credit, neither cash nor equity. It is created with the market value of the securities increase in the value. The purpose of SMA is to maintain the buying power that is provided by unrealized gains towards the subsequent purchases. SMA is an appropriate way to maintain stable account value and minimize unnecessary accounts funding.

SMA increases with the increase in the value of the security, but does not decrease when the security falls in the value.

SMA is increased by the transactions such as cash deposits, interest income or dividend received or security sales. Dividend declared by the company creates a positive sentiments in the minds of investors. However, it will not create any impact on the SMA account, until it is actually received.

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Which of the following is a business plan most similar to? A pinball machine
pickupchik [31]

Answer:

C: A road map.

Explanation:

Business plans are mapped out just like road map. Pinball machines and dreams are not mapped out and wish lists are just collections of things that you want while a business plan is a plan of action.

Hope this helps!  :)

5 0
3 years ago
Frank, the CEO of an American production company, negotiated an opportunity with a television provider in India. After the negot
In-s [12.5K]

Answer:

The contract would be described as <em>International Contract.</em>

Explanation:

<em>International Contracts: </em>International contracts refers to a legally binding agreement between parties based in different countries, in which they are obligated to do or not do certain things. International contracts may be written in a formal way such as the example of Frank contracting an Indian television provider.

Consequently, Frank and the Indian television provider having entered into a contract, are governed by international contract law unless they agree to abide by the laws of one of the US and India.

Moreover, <em>International sales contracts </em>are governed by the <em>United Nations Convention on Contracts for the International Sale of Goods (CISG) from 1980.</em>

8 0
3 years ago
Read 2 more answers
Exercise 2-10 Applying Overhead Cost to a Job [LO2-2] Sigma Corporation applies overhead cost to jobs on the basis of direct lab
OlgaM077 [116]

Answer:

See explanations below.

Explanation:

1. Yes. Overhead should be applied to job W at year-end. Overhead is applied to every jobs whether or not they are completed at year end.

b. To calculate the amount of overhead to be applied to job W, we need to calculate first the overhead application rate based on direct labor cost through job V.

Direct labor cost. $8,000

Overhead applied $6,000

Overhead rate = [ Overhead applied / Direct labor cost ] × 100

= [6,000/8,000] × 100

= 75%

Overhead to be applied to job W

Direct labor cost $4,000

Overhead rate 75%

Overhead to be applied = $3,000

It therefore means that $3,000 should be applied to job W.

2. Because job W was not completed at the year end, it would then be included in the work in process inventory in the financial statements of Sigma Corporation at year end.

6 0
3 years ago
A concept that can be used to describe (how will government's money be spent)
jonny [76]
Governments money is usually spent for weapons or vaccines for sicknesses.
6 0
3 years ago
Wren and Zola are on a team that has been assigned to cut production costs in an electronic component production facility. For s
aksik [14]

Answer:

B) Norming

Explanation:

Analyzing the scenario above, it is possible to state that Wren and Zola are in the team development norming stage.

At this stage, there is an increase in the identification of the role of each member and their goal in a team. There is a decrease in previous conflicts and an increase in group identity, which helps to develop tasks more effectively and jointly, where each member has a well-defined responsibility and the leader has the essential role of regulating the group and assisting in the development the responsibilities of each one, which will lead to effectiveness in achieving the team's objectives.

7 0
3 years ago
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