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OLEGan [10]
3 years ago
12

In the 1920's, the danger of buying stock on margin was that if the value of the stock dropped, borrowers _____.

Business
2 answers:
devlian [24]3 years ago
6 0

I believe the answer is: had to make up the difference.



when you buy a stock on margin, you would technically borrowing money from the broker to buy stocks with current value price and would receive it in future stock value.

If the value of the stock increased in the future, you can cover the loan with percentage of the profit and receive the remaining. If the value fall, you had to make up for the difference.

labwork [276]3 years ago
4 0
In the 1920's, the danger of buying stock on margin was that if the value of the stock dropped, borrowers <span>had to make up the difference.</span> The answer to your question is A. I hope that this is the answer that you were looking for and it has helped you.
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When the Sales Tax feature is enabled in QuickBooks Online, where must you record sales tax payments?
scoray [572]

Answer:

Sales Tax Center

Explanation:

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7 0
3 years ago
Which sentence makes a logical comparison? bob's stocks are worth more than leslie's. bob's stocks are worth more than leslie. l
Naddika [18.5K]
The first one!
Bob's stocks are worth more than leslie's.
3 0
4 years ago
Read 2 more answers
Holtzman Clothiers's stock currently sells for $40.00 a share. It just paid a dividend of $1.75 a share (i.e., D0 = $1.75). The
VladimirAG [237]

Answer: See explanation

Explanation:

a. What stock price is expected 1 year from now?

This will be calculated as:

= P0 × (1 + g)

where,

P0 = $40

g = growth rate = 7%

= P0 × (1 + g)

= 40 × (1 + 7%)

= 40 × (1 + 0.07)

= 40 × 1.07

= $42.80

b. What is the required rate of return?

This will be:

= (D1 / P0) + g

where D1 = D0 × (1+g) = 1.75 × (1+0.07) = 1.75 × 1.07 = 1.8725

= (D1 / P0) + g

= (1.8725 / 40) + 0.07

= 0.1168

= 11.68%

5 0
3 years ago
The group of accounting educators who offer their opinions about proposed FASB statements, after research has been done to deter
sasho [114]

Answer:

.D. the AAA.

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The American Accounting Association (AAA) is a global accounting education, analysis and practice excellence organization. It is a voluntary group of people with a passion in research and education in accounting.

4 0
3 years ago
A farmer wants to fence in an area of 1.5 million square feet in a rectangular field and then divide it in half with a fence par
Vikentia [17]
If the rectangular field has notional sides
x
and
y
, then it has area:
A
(
x
)
=
x
y

[
=
6
⋅
10
6
sq ft
]
The length of fencing required, if
x
is the letter that was arbitrarily assigned to the side to which the dividing fence runs parallel, is:
L
(
x
)
=
3
x
+
2
y
It matters not that the farmer wishes to divide the area into 2 exact smaller areas.
Assuming the cost of the fencing is proportional to the length of fencing required, then:
C
(
x
)
=
α
L
(
x
)
To optimise cost, using the Lagrange Multiplier
λ
, with the area constraint :
∇
C
(
x
)
=
λ
∇
A

∇
L
(
x
)
=
μ
∇
A

⇒
μ
=
3
y
=
2
x
⇒
x
=
2
3
y
⇒
x
y
=
{
2
3
y
2
6
⋅
10
6
sq ft
∴


{
y
=
3
⋅
10
3
ft
x
=
2
⋅
10
3
ft
So the farmer minimises the cost by fencing-off in the ratio 2:3, either-way
4 0
3 years ago
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