Answer:
The rate of return on the investment if the price fall by 7% next year is -22% which is shown below.
The price of Telecom would have to fall by $71.43($250-$178.57), before a margin call could be placed.
Lastly,if the price fall immediately,the margin price would $178.57 as shown below
Explanation:
Total shares bought=$40000/$250=160 shares
Interest on amount borrowed=8%*$20000=$1600
When the price falls by 7% the new price =$250(1-0.07)=$232.50
Hence rate of return=(New price*number of shares-Interest-total investment)/initial investor's funds
=($232.50*160-$40000-$1600)/$20000=-22%
Initial margin=investor's money/total investment=$20000/$40000=50%
maintenance margin=30%
Margin call price=Current price x (1- initial margin)/ (1- maintenance margin)
=$250*(1-0.5)/(1-0.3)
=$178.57
Mixed because if everything its mixed up you won't no how much u have of something.
The buyers' journey is the process buyers go through to become aware of, evaluate and purchase a new service or product. The journey is divided into three basic stages; which are awareness, consideration and decision stage. In the scenario described above, the buyer is not in any of the stages of the buyer journey.
Answer:
a, a movement along a demand curve
b. shift of the demand curve.
c. a movement along a demand curve
d. shift of the demand curve.
Explanation:
Only a change in the price of a good leads to a movement along the demand curve of that good. Also, only a change in the price of the good would lead to an increase or decrease in the quantity demanded of that good.
Other factors other than the change in the price of the good would lead to a shift of the demand curve. Some of those factors include :
1. a change in consumers' expectation
2. a change in the taste of consumers
3. a change in income
a. A discount would reduce the price of furniture, as a result the quantity demanded would increase. There would be a movement down along the demand curve.
b. As a result of the increase in grant, the income of students increase. this would lead to an increase in demand. the demand curve would shift outward
c. As a result of higher prices, the quantity demanded of detergents would reduce. This would lead to a movement up along the demand curve for detergents
d. An increase in demand for energy drinks is as a result of a change in taste. this would lead to an outward shift of the demand curve