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marta [7]
3 years ago
15

You purchased 100 shares of IBM common stock on margin at $130 per share. Assume the initial margin is 50%, and the maintenance

margin is 30%. Below what stock price level would you get a margin call
Business
1 answer:
N76 [4]3 years ago
7 0

Answer:

$46.43

Explanation:

Calculation for Below what stock price level would you get a margin call

First step is to calculate the Loan amount

Loan amount=(100 shares × $130 × 0.5

Loan amount= $6,500 × 0.5 = $3,250

Now let calculate Stock price level

0.30 = (100P $3,250)/100P

30 - P = 100P - $3,250

30-100P= - $3,250

-70P = -$3,250

P=$3,250/70

P = $46.43

Therefore Below what stock price level would you get a margin call will be $46.43

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There are zero coupon bonds outstanding that have a YTM of 5.97 percent and mature in 19 years. The bonds have a par value of $1
Fed [463]

Answer:

market price = $1,104.20

Explanation:

yield to maturity of zero coupon bonds = (face value / market price)¹/ⁿ - 1

  • YTM = 5.97%
  • n = 19 x 2 = 38
  • face value = $10,000

(face value / market price)¹/ⁿ = YTM + 1

face value / market price = (YTM + 1)ⁿ

market price = face value / (YTM + 1)ⁿ

market price = $10,000 / 1.0597³⁸ = $10,000 / 9.0563 = $1,104.20

8 0
3 years ago
You start a new business selling a product thats the best of its kind on the market. In addition to this product, what must you
aleksandrvk [35]

Answer:

A. Good marketing

Explanation:

Every organization, regardless of the segment or product it sells, must develop a consistent marketing strategy.

A company that sells a product that is the best of its kind on the market, must invest in an effective strategy so that the product is known to consumers, is competitive and correctly distributed. The five p's of marketing can be a good strategy to correctly position the product on the market, as it involves strategic development for the product, price, promotion, place and people.

7 0
3 years ago
Typing resources allows managers to make better resource ordering decisions by:
SVETLANKA909090 [29]
Typing resources allows managers to make better resource ordering decisions by describing the size, capability, and staffing qualifications of a specific resource.
7 0
3 years ago
g A monopoly is a market that has Group of answer choices Only one buyer. Only one seller. Many sellers who sell differentiated
Dahasolnce [82]

Answer:

Only one seller.

Explanation:

A monopoly is a market structure which is typically characterized by a single-seller (one seller) who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes.

Also, a monopolist refers to any individual that deals with the sales of unique products in a monopolistic market.

For example, a public power supply company is an example of a monopoly because it serve as the only source of power supply to the general public in a society.

A public power company refers to a company that provides power (electricity) utility to the general public of a society.

In conclusion, a monopoly is a market that has only one seller.

5 0
3 years ago
Can a trend serve as a business opportunity?<br> A.)True<br> B.)False
Anarel [89]

Answer:

A. True

Explanation:

It can hop on the trend to seem appealing. Ex: in the early 2000s, crop tops where a trend, so businesses where all making shirts that are crop tops so people would buy them.

8 0
1 year ago
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