Ask question

Ask question

All categories

3 years ago

9

Suppose that XTel currently is selling at $60 per share. You buy 1,000 shares using $48,000 of your own money, borrowing the rem

ainder of the purchase price from your broker. The rate on the margin loan is 8%.
Required:
What is the percentage increase in the net worth of your brokerage account if the price of XTel immediatelychanges to (a) S66: (b) $60; (c) S54?

1 answer:

Dmitriy789 [7]3 years ago

5 0

Answer:

a. 12.50%

b. 5%

c. -12.50%

Explanation:

Purchase value of share = 1000 shares x $60 = $60000

Own money used for pruchase = $48000

Loaned money = 60000 - 48000 = $12000

a. Percentage increase in net worth = (66x1000 - 12000 - 48000) / 48000 = 12.50%

b. Percentage increase in net worth = (60x1000 - 12000 - 48000) / 48000 = 0%

a. Percentage increase in net worth = (54x1000 - 12000 - 48000)/48000 = -12.50%

You might be interested in

Please help me asap!!!

melomori [17]

Answer:

Finder's fee. good luck dude

6 0

3 years ago

The _________________________ was formed by Samuel Gompers, who was inspired by Marxism. It had success in lobbying Congress for

Vladimir79 [104]

The American Federation of Labor (AFL) was formed by Samuel Gompers, who was inspipred by Marxism. It has success in lobbying Congress for better working conditions. Samuel Gompers was an American Labor Union Leader and remained a key figure in changing American labor history.

7 0

3 years ago

A new home sold for $350,000. The tax rate is $.825 per hundred or fraction thereof. How much will the annual taxes be on this p

Sonbull [250]

Answer:

$2,887.50

Explanation:

$350,000 ÷ 100 = $3,500

$3,500 x 0.825 = $2,887.50

hope this helps :)

3 0

3 years ago

Assume that there are 5 different issues of sports illustrated, 6 different issues of newsweek, and 3 different issues of time,

Genrish500 [490]

Answer:

a. P(1 Sports illustrated and 3 Newsweek) = $\frac{100}{1001}$

b. P(at least 2 Newsweek) = $\frac{595}{1001}$

We follow these steps to arrive at the answer:

The total number of magazines is $5+6+3 =14$

Of these we need to choose 4 books randomly. Since order doesn’t matter here, we use combinations.

There are $_{14}C_{4}$ ways to choose 4 books.

$_{14}C_{4}=\frac{14!}{10!4!} = 1001 ways$

1. 1. We need to choose 1 Sports illustrated and 3 newsweeks.

We can choose 1 Sports illustrated from 5 in $_{5}C_{1}$ ways.

$_{5}C_{1}=\frac{5!}{4!1!} = 5 ways$

We can choose 3 issues of Newsweek in $_{6}C_{3}$ ways.

$_{6}C_{3}=\frac{6!}{3!3!} = 20 ways$

So,

$P(1 Sports Illustrated and 3 Newsweek) = \frac{_{6}C_{3} * _{5}C_{1}}{_{14}C_{4}}$

$P(1 Sports Illustrated and 3 Newsweek) = \frac{20 * 5}{1001}$

$P(1 Sports Illustrated and 3 Newsweek) = \frac{100}{1001}$

2.<u> P(at least 2 Newsweek)</u>

Here we divide the number of books into two categories. One is the Newsweek Magazines (6), the other group consists of all other books (8).

$P(at least 2 Newsweek) = 1 - [P(no Newsweek) + P(one newsweek)]$

Now, if we have to find P(no newsweek), we first need to find the number of ways we can select 4 books from the group that does NOT contain Newsweek magazines.

We can calculate that by:

${ _{8}C_{4} = \frac{8!}{4!4!} = 70 ways$

So,

$P(no newsweek) = \frac{70}{1001}$

We can compute P(1 Newsweek) as follows:

We can choose 1 Newsweek in $_{6}C_{1} =\frac{6!}{5!1!} = 6 ways$

We can choose 3 other books in $_{8}C_{3} =\frac{8!}{5!3!} = 56 ways So, P(at least 1 Newsweek) = [tex]\frac{6*56}{1001} or \frac{336}{1001}$

Since

$P(at least 2 Newsweek) = 1 - [P(no Newsweek) + P(one newsweek)]$ ,

$P(at least 2 Newsweek) = 1 - [\frac{70}{1001} + \frac{336}{1001}]$

$P(at least 2 Newsweek) = 1 - [\frac{406}{1001}]$

$P(at least 2 Newsweek) = \frac{595}{1001}$

4 0

3 years ago

Which of the following will decrease the demand (demand curve shifts to the left), for jogging shoes?

Brut [27]

Answer:

B. A decrease in the price of substitutes.

Explanation:

When there is a Decrease in the price of Substitute goods to jogging shoes then more people will demand more of those substitutes.

Because those other goods are Substitutes, an increase in their demand reduces the demand for Jogging shoes because goods that are substitutes are not usually bought at the same time.but rather to replace the other. When more of the jogging shoe substitute are bought, less Jogging shoes will be demanded.

3 0

3 years ago