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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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Why do I have pay for answers when I'm going to school to be able to earn money? Yes, I'm 16, almost 17 and don't have a job bec
sammy [17]

Explanation:

Thank you for this brilliant question, the truth is that you do not have to pay the fee yourself, you parents are meant to pay the fee for you, think of it, when you are asked for school fee in school, who is expected to pay? your mom i guess right, same thing with paying for answers, which is still part of your education, now paying for answers so that you keep learning is the obligation of your parents (mom or dad).

Thank you if you need for clarification do not hesitate to ask more questions

3 0
3 years ago
there is a growing emphasis on strategic supply management processes and less on purchase transactions.
PSYCHO15rus [73]

This statement is true. As there is the growing emphasis on the strategic supply management processes and less on the purchase transactions.

Effective interpretation of corporate and supplier objectives, selection of appropriate actions to achieve objectives and integration of inventory information into organizational strategies. hiring professionals trained specifically in supply management, providing them with technical knowledge and long-term leadership development. emphasizing strategic cost management, engaging key suppliers early in the process, and measuring reductions in total cost of ownership. Supply management has evolved from a process-oriented, strategic function to a transactional, tactical function. The reduction in inventory investment comes primarily from users reducing their demand for stocked items. Therefore the statement is true.

Learn more about supply management.

brainly.com/question/25843620

#SPJ4

8 0
1 year ago
Break-Even for a Service Firm Jonah Graham owns and operates The Green Thumb Company (GTC), which provides live plants and flowe
kenny6666 [7]

Answer:

The company should provide, in average, 90 jobs per month in order to break even.

Explanation:

We will assume that the variable costs are proportional to the quantity and thus VC=a*Q

the profit obtained is

profit = P*Q  , (Price [$/job] * Jobs sold [jobs])

and the total costs are

total costs= FC+VC = FC + a*Q , FC=fixed costs

in order to break even the quantity sold should be enough to cover all costs, therefore

profit = total costs

P*Q = FC + a*Q → Q= FC/(P-a)

thus

Q= FC/(P-a) = $3240 / ($60/job - $24/job) = 90 jobs

5 0
2 years ago
Porque alguien podría querer poner una "bandera Roja" en su propio informe crediticio?
castortr0y [4]

Answer:

I don't know what is meaning

Explanation:

sry

3 0
2 years ago
The yield to maturity on a discount bond is: equal to both the coupon rate and the current yield. equal to the current yield but
dlinn [17]

Answer:

greater than both the current yield and the coupon rate.

Explanation:

A discount bond is a bond that at the point of issuance, it's less than its face or par value.

When a bond is trading for less than its face value in the market, it's known as a discount bond.

The yield to maturity on a discount bond is greater than both the current yield and the coupon rate. This simply means that the coupon rate is usually lower than the yield to maturity of the discount bond.

Additionally, the yield to maturity can be defined as the bond's total rate of return required by the secondary market while the coupon rate is defined as the annual interest of a bond divided by its face value.

For instance, when a bond is issued at a par or face value of $5,000, at maturity the investor would be paid $5,000. But because bonds are being sold before its maturity, it would trade below its face value.

Hence, a bond with the face value of $5,000 could trade for as low as $4,800, thus making it a discount bond.

8 0
3 years ago
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