Answer:
Apr.8
Dr Account Receivable - Suntrust Bank $8,256
Dr Credit card expenses $344
Cr Sales $8,600
(to record sales, payment through credit card issued by Suntrust Bank)
Apr.12
Dr Account Receivable - Continental Card $7,995
Dr Credit card expenses $205
Cr Sales $8,200
(to record sales, payment through credit card issued by Continental Card)
Explanation:
The credit card expenses of the two transaction is calculated as: Sales proceed x % of fee
Thus, the sales made in 8 Apr has the credit card expenses of 8,600 x 4% =$344.
The sales made in 12 Apr has the credit card expenses of 8,200 x 2.5% =$205.
Answer:
8.5%
Explanation:
The computation of the percentage offer on its commercial paper is presented below:
= Annualized T-bill rates + credit risk premium + liquidity premium
= 8% + 0.3% + 0.2%
= 8% + 0.5%
= 8.5%
In order to determine the percentage offer it would be 8.5% by considering all the percentage rate that is mentioned in the question
Answer:
$35.71
Explanation:
The computation of the stock drop price is shown below:
Maintenance margin = Number of shares purchased × price - loan amount ÷ Number of shares purchased × price
30% = 200 shares × price - $5,000 ÷ 200 shares × price
30% × 200 shares × price = 200 shares × price - $5,000
60 × price = 200 shares × price - $5,000
After solving this, the price would be $35.71
And, the loan amount is equal to
= Number of common stock shares purchased × per share value × initial margin
= 200 shares × $50 × 50%
= $5,000
The answer is D.Level of bank credit.
demand decreases, and supply increases. This is easy, the price will drop for sure, but if supply curve shifts right a lot more than the demand curve shifts left, then the new equilibrium point will mean more quantity is supplied at a much lower price. demand increases, and supply decreases.
