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Ket [755]
3 years ago
11

How do margin trades magnify both the upside potential and the downside risk of an investment position?

Business
1 answer:
klio [65]3 years ago
4 0

Answer and Explanation:

Margin trades work this way because they allow them to extend the amount of money invested regardless of whether the security's price drops or rises. In a more simplified way, we can state that the margin trade allows that even if the price of a security goes up or down, the invested money presents a percentage of gain or loss much bigger than the original value. This is because this money was deposited as a loan guarantee, allowing interest to run on it, increasing it.

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Larkspur, Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 80 units were sol
Stella [2.4K]

Answer:

The average cost will be "$201". The further explanation is given below.

Explanation:

<u>At May 31,                              FIFO               LIFO                Average cost</u>

<u>The ending inventory </u>             $220               $180                    $201

Going to end Inventory Computation together under Quarterly inventory management system will be:  

At $11 = $220

  • FIFO = 20 Units

At $9 = $180

  • LIFO = 20 Units
  • Average Cost = 20 Units  

$10.06 = $201.2 i.e $201.

3 0
3 years ago
Hadlee Corporation produces two​ products, P and Q. P sells for​ $9.50 per​ unit; Q sells for​ $5.50 per unit. Variable costs fo
RideAnS [48]

Answer:

C. ​$4,350

Explanation:

We first calculate contribution per limiting factor to rate priority the products to be produced.

Contribution P = 9.50 - 5 = $4.50

Contribution Q = 5.50 - 3 = $2.50

Labor hours used,

P = 3

Q = 5

Contribution / labor hour

P = 4.50 / 3 = $1.5

Q = 2.50 / 5 = $0.5

We should prioritize production of P first and thus total units produced for P should be 900 using 900*3 = 2700 labor hours.

Q should be produced

Hours available for Q = 3300 - 2700 = 600 hours

Q production = 600/5 = 120 units.

Optimum Contribution =

900 units of P @ 4.50 contribution / unit = $4,050

120 units of Q @ 2.50 contribution / unit = $300

Total Contribution = 4,050 + 300 = $4,350

Hope that helps.

5 0
3 years ago
Classified ads are printed only in newspapers. True False
katovenus [111]
The answer is false i hope this helps :3
4 0
3 years ago
Read 2 more answers
Why do incubator facilities continue to remain very popular with start-up businesses?
Eduardwww [97]

Answer:

Incubator facilities are organizations that provide help/guidance for startups in exchange of part of ownership of the businesses.

For example,

They will things such as Business advice, company workspace, and management training to the start ups. In return, the start ups have to give 20% of their shares to the incubators.

This type of facilities tend to remain popular because it is very beneficial for all parties involved.

<u>Benefits for the incubators: </u>

Statistically, 90% of start ups fail. Incubator facilities tend to facilitate a group of start ups under their wing.

Providing advice to start ups will increase their chance of success. Not only that,  Even if some of the start ups fail, some of those who success tend to have enough profit to cover for the fail start ups.

<u>Benefits for the Start ups:</u>

Start ups tend to benefited in the term of capital , education, and connection.

Most incubators owners are people who already succeeded in a specific industry. These owners can use their knowledge and connection to accelerate the growth of the start ups.

5 0
3 years ago
The Outlet has a capital intensity ratio of .87 at full capacity. Currently, total assets are $48,900 and current sales are $53,
Readme [11.4K]

Answer:

correct option is C. 95.36 percent

Explanation:

given data

capital intensity ratio = 0.87

total assets = $48,900

current sales = $53,600

solution

first we get here Sales at full capacity by Capital Intensity Ratio that is

Capital Intensity Ratio = Total Assets ÷  Sales   ..................1

put here value and we get

Sales  = \frac{48900}{0.87}  

Sales  = $56,206.90

and

now we get Level of capacity is the firm currently operating that is express as

Level of capacity = Current sales ÷ Sales at full capacity  .................2

put here value and we get

Level of capacity = \frac{53600}{56206.90}  

Level of capacity =  95.36%

so correct option is C. 95.36 percent

7 0
4 years ago
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