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3 years ago

You are bearish on Telecom and decide to sell short 100 shares at the current market price of $50 per share.

Business

1 answer:

Elden [556K]3 years ago

8 0

Answer:

A. $2,500

B. $60

Explanation:

A. Calculation to determine How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position

Initial Margin = 100*$50*50%

Initial Margin = $2,500

Therefore The amount of securities that you must put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position is $2,500

b. Calculation to determine How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position

First step is to calculate the Maintenance Margin per share

Maintenance Margin per share = $50*30%

Maintenance Margin per share =$15

Second step is to calculate the Rise in price required

Rise in price required = $50*50% - $15

Rise in price required= $10

Now let calculate How high can the price of the stock go

Price of stock=$50+$10

Price of stock= $60

Therefore How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position is $60

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The difference between the price an issuer receives and the offering price at which shares are sold to investors is known as:___

horsena [70]

The difference between the price an issuer receives and the offering price at which shares are sold to investors is known as The gross spreads.

Gross spread is the distinction among the underwriting fee obtained by the issuing business enterprise and the actual rate offered to the making an investment public. In different words, the gross spread is the monetary institution's reduce or benefit from the IPO listing.

The gross proceeds suggest the overall sum of money the syndicate increases from the primary traders. add the underpricing to the gross proceeds to obtain the marketplace price presented.

An underwriting unfold is the distinction among the greenback amount that underwriters, which includes investment banks, pay an issuing for its securities and the greenback quantity that underwriters obtain from promoting the securities in a public imparting. In one of the maximum common definitions, the spread is the space among the bid and the ask charges of a protection or asset, like a inventory, bond, or commodity.

Learn more about gross spreads here:-brainly.com/question/16259338

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4 0

1 year ago

If Roten Rooters, Inc., has an equity multiplier of 1.52, total asset turnover of 1.20, and a profit margin of 6.2 percent, what

Katarina [22]

Answer:

11.30%

Explanation:

Roten rooters have an equity multiplier of 1.52

The total assets turnover is 1.20

The profit margin is 6.2%

= 6.2/100

= 0.062

Therefore the ROE can be calculated as follows

= 0.062× 1.52×1.20

= 0.1130×100

= 11.30%

Hence the ROE is 11.30%

7 0

3 years ago

Read 2 more answers

"If Jason receives his quarterly bonus of $3,000 and spends $2,100 on a computer and puts the rest in his savings account, what

snow_lady [41]

Answer: 0.70; 0.30

Explanation:

Marginal propensity to consume(MPC) is the additional spending by an economic agent due to a rise in income while the marginal propensity to save is the additional saving by someone due to rise in income.

Increase in income = $3,000

Increase in spending = $2,100

Increase in savings = $3,000 - $2,100 = $900

MPC = $2,100/$3,000

= 0.70

MPS = $900/$3,000

= 0.30

7 0

3 years ago

A subsidiary has previously unreported brand names valued at $50 million at the date of acquisition. The brand names have an ind

Damm [24]

Answer:

$38 million.

Explanation:

From the question, we are given the following data or information;

A subsidiary has previously unreported brand names valued = $50 million at the date of acquisition.

Impairment testing reveals that the brand names were impaired by $5 million in the first year.

Impairment testing reveals that the brand names were impaired by $7 million in the second year.

Therefore, Eliminating entry (E) will include a(n):

=> $(50 - 5 - 7) million = $38 million.

4 0

3 years ago

Classify each of the following costs as a direct cost or an indirect cost, assuming that the cost object is the Juniors Departm

Damm [24]

Answer:

deprecation of the building: INDIRECT COSTS
costs of costume jewelry on the mannequins in the juniors department : DIRECT COSTS
cost of bags used to package customer purchases at the main registers for the store : INDIRECT COSTS
the median kohl's store manager salary: INDIRECT COSTS
cost of the security staff at the medina store : INDIRECT COSTS
manager of juniors department: DIRECT COSTS
junior department sales clerks : DIRECT COSTS
cost of juniors clothing: DIRECT COSTS
cost of hangers used to display the clothing in the store : INDIRECT COSTS
electricity used for the building : INDIRECT COSTS
costs of radio advertising for the store: INDIRECT COSTS
juniors clothing buyers' salaries (these buyers buy for all the juniors departments of kohl's store): INDIRECT COSTS

Explanation:

Indirect costs cannot be directly traced to a cost object, while direct costs can be directly traced. Usually direct costs tend to vary depending on total output, while indirect costs tend to be fixed.

3 0

3 years ago