I need help please !!!!!

Dée Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $36 per share. She borrows $4,500 from her b

meriva

Answer:

A) Dee´s Margin = 58.33%; B) Remaining Margin if price drops to $26 is 30.56% C) She won´t receive a margin call (but close...)

D) Rate of Return = - 32.36%

Explanation:

Hi, first let´s find out what the initial margin is, for that we have to use the following formula.

$Margin=\frac{Equity}{ValueStocks}$

Now, in order to find the equity, we have to find the total value of the stocks and substract the debt from it, since it was 300 shares at $30 per share, the total value of the investment is $7,800, therefore, its equity is $3,300 ($7,800-$4,500).

So everything should look like this

$Margin=\frac{6,300}{10,800} =0.5833$

So the initial margin was 58.33%

If the price drops to $26 by the end of the year, the remaining margin in her account is:

$Margin=\frac{3,300}{10,800} =0.3056$

So the remaining margin one year later, after the stock price dropped to $26 was 30.56%

Now, in order to find the rate of return on her investment, at the end of the year, we have to remember that the money loaned was at 11%, therefore, the best way to find out the return of this investment is to convert this into money, like such.

First (Gross Return of the stock)

$Gross Return=\frac{Final.P-Initial.P}{Initial.P} x100$

$Gross Return=\frac{26-36}{36} x100=-0.2778$

Ok, we have the gross return, which is -$27.78%

The interest expenses are just as follows.

$Interest Expense=4,500*0.11=-495$

To find the return on the investmen, we need to use the following formula.

$RateReturn=\frac{FinalInvestment-InitialInvestment}{InitialInvesment} x100$

The final investment is: Gross return($)+interest Expenses

$FinalInvest=\frac{300*(-10)+(-4,500*0.11)}{10,800} =-0.3236$

This means that, by the end of the year, her return on the investment was -32.36%. In money, this is - $3,495.

Best of luck.

5 0

3 years ago

Mathew had purchased 100 shares of Blue Corporation for $100 per share. Currently, the stocks of Blue Corporation are trading at

solong [7]

Answer:

B) 50%

Explanation:

Matthew's total return on investment = (current price - original purchase price) / original purchase price

= ($150 - $100) / $100 = $50 / $100 = 0.5 or 50%

To be able to determine the annual rate of return we would need to know when did Mathew purchase the shares.

6 0

3 years ago

Three years ago, you invested $2,750. Today, it is worth $3,500. What rate of interest did you earn?

Ket [755]

Answer:

Rate of interest is 8.37%

Explanation:

Future Value = $PV(1+r)^{3}$

3,500 = 2750 $(1+r)^{3}$

$\frac{3500}{2750}$ = $(1+r)^{3}$

$\sqrt[3]{\frac{3500}{2750}}$ = $\sqrt[3]{(1+r)^{3}}$

1.0837 = 1+r

r = 1.0837 - 1

r = 0.0837

r = 8.37%

Check:

3500 = 2750 $(1+0.0837)^{3}$

3500 = 3500

6 0

3 years ago

If a customer is wrong about something when expressing resistance, the salesperson should consider using the Indirect Denial met

lukranit [14]

Answer: True. Indirect Denial method should be considered before direct method.

Explanation: The indirect denial method of dealing with a customer is a method in which the customer is first agreed with when expressing a wrong objection. In this method, the customer's argument is first held to be valid, and this is done in order to create a level of trust or confidence with the customer.

After rapport has been established, evidence can then be brought to dispute the customer's claims.

By using the method, the customer doesn't feel threatened or alarmed from the onset and a heated argument will be avoided.

Direct denial method is the opposite of indirect denial method, in this case, strong arguments are used to oppose a customer's claims to show that they have made a mistake.

3 0

3 years ago

Robbie veath brings together buyers and sellers of used heavy construction equipment, and helps them negotiate the terms of the

Alexandra [31]

Answer:

The answer is broker.

Explanation:

Broker refers to someone who function as an intermediary between a buyer and a seller. This person also helps negotiate the price between the two parties. It is clear that Robbie plays this part between the buyer and seller of heavy construction equipment. Robbie does not own the product nor does he provide any financing – which is a condition of being a broker.

5 0

3 years ago