Answer:
The price at which a margin call would be received is $28.929.
Explanation:
The stated question does not contain complete information. The remaining information is as follows.
<em>Assume that you purchase 150 shares of RossCorp stock at $45 each by making a margin deposit of 55 percent. At what price would you receive a margin call?</em>
The price is calculated using the formula for maintenance margin as follows.
Maintenance margin = Equity in account / Value of stock
Equity in account = (Shares purchased x Call price) - (Shares purchased x Remaining ratio x Sale price)
Equity in account = (150 x P) - (150 x 0.45 x 45)
= 150P - 3037.5
Value of stock = Shares purchased x Call price
= 150P
Inserting these values into the formula for maintenance margin:
0.3 = (150P - 3037.5) / 150P
45P = 150P - 3037.5
105P = 3037.5
P = 28.929
Hence, the price at which a margin call would be received is $28.929.
Answer:
<h2>In a market economy,the impact of supply and demand determines the prices of goods and services which in sequence influence the allocation of economy's scarce resources.Hence,the correct answer wold be option b.</h2><h2 />
Explanation:
In a market economy,much of the economic and commercial activities such as production,investment,allocation,consumption of goods and services are governed by their market prices which are determined completely by the free forces of supply and demand in the economy.In a market economic system,the factors or inputs of production are owned and allocated by the independent or private business organisations or firms with limited government or state control over the means of production.Majority of the commodity and service markets are free of any external state or government intervention and operate freely based on the movements and fluctuations of the market prices of goods and services which are determined by the changes in market demand or supply.Therefore,economic allocation or arrangements of goods and services in a market economy is mostly determined by the free interaction of demand and supply
Answer: $220
Explanation:
The following information can be derived from the question:
PV = $200
INT = 0.1 or 10%
N = 1 (years)
To calculate the future value of this investment, we will use the formula:
FV = PV( 1 + i)^n
FV = $200(1 + 0.1)
FV = $200(1.1)
FV = $220
The future value of this investment would be $220.
Explanation:
The Journal Entry is given below:-
a. Cash Dr, 8400
Accounts receivable 8400
(Being the Cash received)
b. Supplies Dr, 2500
Office equipment 2500
(Being the reserve entry is recorded)
Supplies Dr, 2500
Accounts payable 2500
(Being the supply is purchased)
Answer:
Find attached complete question:
common stock dividends is $38,960
preferred stock dividends is $5,040
Explanation:
Going by the complete question,preferred stock dividends is computed thus:
preferred stock dividends=number of shares*par value*dividend rate
number of shares is 7000 (issued and outstanding)
par value of share is $12
dividend rate is 6%
preferred stock dividend=7000*$12*6%=$5040
The preferred stockholders would receive $5040 dividends while the remainder of dividends goes to common stockholders as shown below
Total dividends $44,000
preferred stock dividends ($5040)
common stock dividends $38,960
