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vladimir2022 [97]
3 years ago
5

d (i). Suppose that ZX Inc. is currently selling at $50 per share. You buy 200 shares, using $5,000 of your own money and borrow

ing the remainder of the purchase price from your broker. The rate on the margin loan is 5%. What is the rate of return on your margined position (assuming again that you invest $5,000 of your own money) if ZX Inc. is selling after one year at $46 (use whole number percentage with two decimals rounded up/down - i.e. 0.3245 input 32.45) ? Group of answer choices -21% -20% -19% -18%
Business
1 answer:
strojnjashka [21]3 years ago
8 0

Answer:

-21%

Explanation:

Initial share price = $50

Share price after 1 year = $46

net return = (200 x $46) - $10,000 - ($5,000 x 5%) = $9,200 - $10,000 - $250 = -$1,050

rate of return of margined position = -$1,050 / $5,000 = -0.21 = -21%

when you operate on the margin, your earnings can increase or decrease dramatically. In this case, an 8% price decrease resulted in a 215 lose.

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You are considering an investment in a startup that will cost $100,000 but you will receive a cash inflow of $25,000 every year
bulgar [2K]

Answer:

Simple payback is 4 years

Total discounted Payback is more than the 5 years which is the payback cutoff period.

Explanation:

Payback period is the time period in which the project recovers the initial cost incurred. Lower the payback period the more beneficial will be the project.

Simple payback = $100,000 / $25,000 = 4 years

Discounted Payback

Discounted payback is calculated by using the present value of future cash flows.

Total discounted cash flows = 22935.78 + 21042.0 + 19304.59 + 17710.63 + 16248.28 = 97,241.28

As sum of all cash flows are less than the initial investment so, total discounted Payback is more than the 5 years which is the payback cutoff period.

8 0
2 years ago
The MR = MC rule Multiple Choice applies both to pure monopoly and pure competition. applies only to pure competition. applies o
Neko [114]

The MR = MC rule C. applies only to pure monopoly.

<h3>What is monopoly?</h3>

It should be noted that monopoly simply means the only seller of a good to service in the market.

In this case, the MR = MC rule applies only to pure monopoly.

In conclusion, the correct option is C.

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3 0
1 year ago
You place an order for 1,600 units of Good X at a unit price of $53. The supplier offers terms of 2/30, net 50. a-1. How long do
andre [41]

Answer:

a-1. How long do you have to pay before the account is overdue?

  • 50 days

a-2. If you take the full period, how much should you remit?

  • if you pay after the discount period (first 30 days) but before the 50th day, you must pay $84,800

b-1. What is the discount being offered?

  • 2% if you pay within 30 days

b-2. How quickly must you pay to get the discount?

  • you have up to 30 days to pay the invoice and still get the discount

b-3. If you do take the discount, how much should you remit?

  • $83,104

c-1. If you don’t take the discount, how much interest are you paying implicitly?

  • $1,696

c-2. How many days’ credit are you receiving?

  • the total credit period is 50 days

7 0
3 years ago
Tickets Now contracts with the producer of Riverdance to sell tickets online. Tickets Now charges each customer a fee of $4 per
gogolik [260]

Answer:

$14

Explanation:

Fee from customers = $4

Fee from producer = $10

Total Fee income received = 10+4 = $14

$14 should be recognized as income for each Riverdance ticket sold.

Ticket Now has sold the ticket (which is assumed to be nonrefundable) and it has performed what is required (to sale the tickets), so recognize the revenue of $14.

4 0
3 years ago
When the manufacturer of Cool Whip introduced a chocolate-flavored Cool Whip and still continued to produce all of its other Coo
Mashutka [201]

If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of (C) line extension.

<h3>What is line extension?</h3>
  • The process of expanding an established product line is referred to as line extensions.
  • When a corporation with a well-known brand releases new items in a product segment.
  • The corporation capitalizes on the existing product's value to the market and presents new options to consumers.
  • A corporation launches a brand line extension by using the brand name of an existing product to launch a new, somewhat different item in the same product category.
  • Line extension would be demonstrated if the manufacturer of Cool Whip introduced a chocolate-flavored Cool Whip while continuing to produce all of its existing Cool Whip products.

Therefore, if the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of (C) line extension.

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The complete question is given below:
If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of

a. a brand extension.

b. quality modification.

c. line extension.

d. a new-to-the-world product.

e. functional modification.

8 0
2 years ago
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