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Vinil7 [7]
3 years ago
10

You are bullish on Stock A. The current market price is $67 per share, and you wish to purchase 200 shares. Your plan is to borr

ow at the maximum possible amount allowed under the initial margin requirement of 50%. How far does the price of Telecom stock have to fall for you to get a margin call if the maintenance margin is 26%?
Business
1 answer:
Vikentia [17]3 years ago
7 0

Answer:

The Margin call will be made at $50.92

Explanation:

Initial Margin per share = Price*Margin requirement

Initial Margin per share = $67*50%

Initial Margin per share = $33.50

Maintenance Margin per share = $67 * 26% = $17.42

Hence, the loss allowed = Initial Margin per share - Maintenance Margin per share =  $33.50 - $17.42 = $16.08

Hence, the price of a share can fall up to $50.92 (i.e. $67-$16.08) before getting a margin call. Thus, the Margin call will be made at $50.92

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Monumental, Inc. contracts with Champion Builders to erect a three-story office building on a parcel of land it has purchased. B
Elza [17]

Answer:

A) True

Explanation:

Monumental can discharge the contract by frustration. In order for a contract to be discharged by frustration, four conditions have to occur:

  1. An unforeseeable event must occur: In this case the zoning changes were unforeseeable.
  2. No party is at fault: the zoning board made the changes to the zoning of the land.
  3. Performance is impossible: there is no reason why an office building should be built in a residential only area.
  4. The result is radically different than expected: neither Monumental or Champion Builders expected a zoning change to occur.
7 0
3 years ago
Which is not a determinant of demand?
barxatty [35]

B is the correct answer

Hope this helps

6 0
3 years ago
Read 2 more answers
Drea is facing an ethical dilemma and is unsure how to proceed because there seems to be no “right” answer for everyone. Her bus
Fudgin [204]

Since Drea is facing an ethical dilemma and she wants to have the best option to her ethical dilemma, for the second step, she wouls have to: Identify feasible options. Option b.

<h3>What is an ethical dilemma?</h3>

In philosophy, ethical dilemmas—also known as ethical paradoxes or moral dilemmas—arise when an agent must choose between two competing moral obligations, none of which takes precedence. A definition that is similarly comparable describes ethical situations as ones where there is no right decision to be made.

An ethical problem, also known as a moral problem or ethical paradox, arises when a person must choose between two possibilities, none of which are wholly ethically acceptable.

An ethical conflict is an opposition between two morally righteous actions. A disagreement exists between two values or principles. The problem is that by choosing one correct action, you will invalidate the other right course because you would be acting both rightly and wrongly at the same moment.

Read more on ethical dilemma here: brainly.com/question/3838938

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3 0
1 year ago
The leading and the lagging strands differ in that _____.
lesya692 [45]

Answer: Option (C)

Explanation:

The known key difference in between the leading and lagging strand can be described as that leading strand is referred to as DNA strand, that tends to  grows continuously during the process of DNA replication on the other hand  lagging strand is known as DNA strand, which tends to grow discontinuously by formulating the segments referred to as the Okazaki fragments.

3 0
3 years ago
Bramble Corporation was organized on January 1, 2020. It is authorized to issue 10,500 shares of 8%, $100 par value preferred st
blsea [12.9K]

Answer and Explanation:

The journal entries, posting and preparation of the paid-in capital section of stockholders’ equity is presented below:

a. The journal entries are shown below:

On Jan 10

Cash $302,000  

        To Common Stock  $151,000 (75,500 shares × $2)

        To Paid in Capital in Excess of Stated Value-Common Stock $151,000

(Being the issuance of the common stock is recorded)  

On Mar 1

Cash $593,250  (5,650 shares × $105 )

               To Preferred Stock  $565,000 (5,650 shares × $100 )

               To Paid in Capital in Excess of Par-Preferred Stock $28,250  

(Being the issuance of the Preferred stock is recorded)  

On Apr 1

Land $83,000  

               To Common Stock  $50,000 (25,000 shares × $2)

                To Paid in Capital in Excess of Stated Value-Common Stock $33,000  

(Being the issuance of the common stock is recorded)  

On May 1

Cash $359,125  (84,500 shares × $4.25)

         To Common Stock  $169,000 (84,500 shares × $2)

         To Paid in Capital in Excess of Stated Value-Common Stock $190,125  

(Being the issuance of the common stock is recorded)  

On Aug 1

Organization expenses $41,000  

           To Common Stock  $22,000 (11,000 shares × $2)

            To Paid in Capital in Excess of Stated Value-Common Stock  $19,000  

(Being the issuance of the common stock is recorded)  

On Sep 1

Cash $60,000  (10,000 shares × $6)

       To Common Stock    $20,000 (10,000 shares × $2)

       To Paid in Capital in Excess of Stated Value-Common Stock $40,000

(Being the issuance of the common stock is recorded)    

On Nov 1

Cash $277,500  (2,500 shares × $111)

           To Preferred Stock  $250,000 (2,500 shares × $100)

           To Paid in Capital in Excess of Par-Preferred Stock  $27,500

(Being the issuance of the common stock is recorded)  

b. The T accounts of the above accounts are presented below:

                                     Preferred Stock

                                                             Mar 1        $565,000

                                                             Nov 1       $250,000

                                                            Balance    $815,000

                                     Common Stock

                                                             Jan 10     $151,000

                                                             April 1      $50,000

                                                             May 1       $169,000

                                                             Aug 1       $22,000

                                                             Sep 1       $20,000

                                                            Balance    $412,000

                         Paid in capital in excess of par - Preferred stock

                                                             Mar 1        $28,250

                                                             Nov 1       $27,500

                                                            Balance    $55,750

                      Paid in capital in excess of stated value - Common stock

                                                            Jan 10     $151,000

                                                             April 1      $33,000

                                                             May 1       $190,125

                                                             Aug 1       $19,000

                                                             Sep 1       $40,000

                                                            Balance    $433,125

c. Now the preparation is presented below:

                                     Bramble Corporation

                                     Balance Sheet Partial

                                   As of December 31, 2020

Stockholders Equity

Capital Stock

Preferred Stock             $815,000

Common Stock             $412,000

Total Capital Stock                           $1,227,000   (A)

Additional Paid in capital

Paid in Capital in Excess of Par-Preferred Stock $55,750

Paid in Capital in Excess of Stated Value-Common Stock  $433,125

Total Additional Paid in Capital        $488,875   (B)

Total Stockholders Equity                 $1,715,875   (A + B)

6 0
3 years ago
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