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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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Klingon Cruisers, Inc., purchased new cloaking machinery five years ago for $20 million. The machinery can be sold to the Romula
muminat

Answer:

1) Book Value= $16,464,000

2) Market Value = $19,080,000

Explanation:

The first question is to determine the book value of Klingon's assets today. Book value is the carrying value of the business in its balance sheet.

Book Value = Net working Capital + Current Liabilities + Net Fixed Assets

Net working Capital= $226,000

Current Liabilities= $700,000

Net Fixed Assets= $15,500,000

Book Value = $226,000+ $700,000+$15,500,000= $16,464,000

2) Calculate the market value

The formula for market value = How much the machinery was sold to Romulans today+ today's value of the current assets if they are liquidated

The market value of assets is a function of the current market price they can be sold for and received on the day of the valuation

Market Value= $18,000,000 + $1,080,000= $19,080,000

4 0
3 years ago
Which of the following things can help you get a lower interest rate when you receive a loan?
Marta_Voda [28]
I you go for a shorter term your monthly pay will go up but you interet rate will lower. 
7 0
2 years ago
Developing and establishing professional contacts that can assist you in finding employment is?
butalik [34]

It is called networking.

Networking is the informal social exchange of information and ideas between people who share a profession or a common interest. Networking frequently begins with a single point of commonality.

Networking is making use of personal, commercial, academic, or family relationships to help with a job hunt, attain career objectives, learn more about your industry, or another sector in which you'd like to work. Networking might help you learn about career prospects or gain access to a firm one want to work for.

Therefore, the answer is networking.

To know more about networking click here:

brainly.com/question/3639506

#SPJ4

6 0
1 year ago
What will happen to the price and quantity of Japanese goods in the US if the dollar depreciates causing the costs of producing
Helga [31]

The prices of Japanese goods will increase.

<h3>Economic Principles of Demand and Supply </h3>

Following the principles of demand and supply, the higher the price, the higher the quantity supplied (all other factors remaining constant).

Recall that cost of production for Japanese goods has also increased according to the question. When prices increase, suppliers sometimes want to take advantage to create even additional inflation in order to get additional profit. Hence they put out more goods at the instance of increased prices.

See the link below for more about the law of supply:
brainly.com/question/4803223

3 0
2 years ago
Job descriptions often include the following information related to the job
Vilka [71]

Resume, school transcript, professional certifications, awards, memberships in professional organizations. Letters of recommendation, "thank you" notes, newspaper/website articles about you.

7 0
1 year ago
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