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
valentina_108 [34]
3 years ago
14

A new client of the member firm has just opened a margin account. After account approval, the client's initial trade is an order

to purchase 100 shares of LMN common stock at $25. With Regulation T at 50%, in order to be in compliance with all regulations, the client would need to deposit:___________
Business
1 answer:
Aleks04 [339]3 years ago
7 0

Answer:

$2,000

Explanation:

Data provided in the question

Number of shares purchased = 100 shares

Price of common stock = $25

Given percentage = 50%

Based on the above information, there is no borrowing taken place in a margin account because there is a minimum requirement to maintain $2,000 in equity and when the purchase is made lower than $2,000 so it is important to pay the amount in full and the deposits are important when it is made more than $2,000 in the case when the trade is more than $4,000

You might be interested in
Jamestown Supply is trying to decide whether to lease or buy some new equipment. The equipment costs $72,000, has a 4-year life,
DochEvi [55]

Answer:

$15,708

Explanation:

Calculation to determine What is the amount of the aftertax lease payment

Using this formula

Aftertax lease payment=Leased equipment(1-Tax rate)

Let plug in the formula

Aftertax lease payment = $23,800 (1 - 0.34)

Aftertax lease payment=$23,800(.66)

Aftertax lease payment = $15,708

Therefore the amount of the aftertax lease payment is $15,708

3 0
3 years ago
The corporate charter of Martin Corporation allows the issuance of a maximum of 4,000,000 shares of $1 par value common stock. D
Mrrafil [7]

The question is incomplete. Here is the complete question

The corporate charter of Martin Corporation allows the issuance of a maximum of 4,000,000 shares of $1 par value common stock. During its first three years of operation, Martin issued 3,200,000 shares at $15 per share. It later acquired 30,000 of these shares as treasury stock for $25 per share. Based on the above information, answer the following questions:

a. How many shares authorized?

b. How many shares were issued?

c. How many shares are outstanding?

d. What is the balance of the Common Stock account?

e. What is the balance of the Treasury Stock account?

Answer:

(a) 4,000,000 shares

(b) 3,200,000 shares

(c) 3,170,000 shares

(d) $3,200,000

(e) $750,000

Explanation:

(A) Number of shares that was authorized is 4,000,000

(B) Number of shares that was issued is 3,200,000

(C) The number of shares outstanding can be calculated as follows

= number of shares issued-acquired shares in the treasury stock

= 3,200,000-30,000

= 3,170,000

(D) The balance of common stock account can be calculated as follows

= number of shares that was issued-per value

= 3,200,000×$1

= $3,200,000

(E) The balance of the treasury stock account can be calculated as follows

= acquired shares in the treasury stock×price per share

= 30,000×$25

= $750,000

6 0
3 years ago
ABC Lumber spent $1,000 cutting down a tree. The result was 40 unfinished logs that sell for $20 each and 100 bags of sawdust th
CaHeK987 [17]

Answer: below

Explanation:

- The sawdust should be sold as is without being processed into Presto

Logs.

- The pieces of unfinished lumber should be processed

8 0
3 years ago
Martin puts his weekly paycheck into his checking account. In which column should he write the value of his paycheck?
deff fn [24]

Answer

a. Deposits

Explanation

A checking account is a bank account where members can withdraw and deposit money with ease of access. It is mostly used for bill payments and for making personal financial transactions .A checking account allows for check deposits and debit card transactions


6 0
3 years ago
Read 2 more answers
___ social classes do not tend to be among Whole Foods customers because of the higher prices for products.
Luden [163]

Answer:

A

Explanation:

Lower class can not usually afford store like this. Hence why they are called lower class

8 0
3 years ago
Read 2 more answers
Other questions:
  • A Romer economy starts off with an initial stock of ideas equal to 100. The total population in the economy is 60, two of the wo
    14·1 answer
  • There are three economy situations and two stocks Information is as follows Economy Stock A Stock B Booming 0.3 10 20 Neutral 0.
    8·1 answer
  • Held-to-Maturity Bond Investment On January 1, 2016, Weaver Company purchased as held-to-maturity debt securities $500,000 face
    5·1 answer
  • Suave's new shampoo, HI7, is faltering badly in the market. Suave's marketing personnel are unsure who is responsible for variou
    13·1 answer
  • Suppose you purchase a 20-year treasury bond with a 6% annual coupon ten years ago at par. Today the bond's yield to maturity ha
    6·1 answer
  • High levels of both job involvement and psychological empowerment are positively related to ________.A) withdrawal behaviorB) po
    13·1 answer
  • The stockholders’ equity accounts of Cyrus Corporation on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncum
    7·1 answer
  • The new Fore and Aft Marina is to be located on the Ohio River near Madison, Indiana. Assume that Fore and Aft decides to build
    15·1 answer
  • Các yếu tố ảnh hướng đến chất lượng<br> , yếu tố quan trọng . Tại sao ?
    10·1 answer
  • What is one benefit to working collaboratively on a team
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!