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JulsSmile [24]
3 years ago
5

is trading at 54.33. You decide to short sell 100 shares of their stock, providing 3100 in collateral to your broker. You hold t

he short position for one year and expect Comcast to pay a dividend of 1 per share. In one year, the stock price is 44. Assuming the brokerage account pays no interest on your cash, what is your return, relative to your collateral
Business
1 answer:
Usimov [2.4K]3 years ago
6 0

Answer: 30.1%

Explanation:

Return = (Value of stock when shorted - Dividend - Value of stock when returning stock)/Capital employed

Dividend = 100 shares * $1 per share

= $100

Dividends are subtracted because they are owed to the shareholders the stock was borrowed from.

Value of stock when shorted = 54.33 * 100 = $5,433

Value of stock when returning stock = 44 * 100 = $4,400

= (5,433 - 100 - 4,400) / 3,100

= 30.1%

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Andy, a salesperson for Fashion Seal Uniforms, tells the owner of a retirement home about the importance of caregivers having cl
choli [55]

Answer:

Exploration

Explanation:

The exploration phase of the relationship development process occurs when both parties (seller and buyer) test the actions of the other party. Both parties will explore or try how the business relationship may develop, since they are not committed yet to start a relationship.

The owner accepted to purchase a small number of uniforms to try how good or bad they are. Andy is also testing if what the owner says is true about opening new centers and needing a lot of uniforms before making an offer for a larger lot.

7 0
3 years ago
Suppose that the demand for my new book, Spatulas From Around the World, is such that the demand curve lies everywhere below the
dsp73

Answer:

C. Shut down the presses printing my book

Explanation:

Since the average variable cost of producing the book is above the demand curve, the best course of action is to shut down the printing (production) of more books. The author would lose less money by shutting down operations rather than continuing production at a variable cost higher than the demand he's receiving for the books.

In economics, when profit is less than the average variable cost, firms are advised to stop production in the short run and incur economic loss on fixed inputs. This is because with continued operations, total revenue would not only be lower than total cost, but rather, would also be less than total variable cost.

8 0
3 years ago
What would be the best time for a person to buy a franchise?
VashaNatasha [74]
When your financially comfortable
3 0
3 years ago
Read 2 more answers
Identify whether the actions or scenarios would likely increase or decrease the natural rate of unemployment. You are currently
Oksanka [162]

Answer:

increases natural rate of unemployment

extra financial benefits for the unemployed

a large number of young people entering the labor force

an increase in union membership

Decreases natural rate of unemployment

reducing workers' collective bargaining rights

Explanation:

natural rate of unemployment is unemployment that exists when there is only structural and frictional unemployment in an economy

structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition . Structural unemployment tends to be permanent.  

Frictional unemployment . the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.

If the unemployed are given extra benefits, there would be less incentive to find a job, thus unemployment would increase

An increase in union membership increases bargaining power of employees. this can lead to increase in wages. increase in wages reduces demand for labour and this increases unemployment. reducing collective bargaining right has the opposite effect on unemployment

a large number of people entering the labour force increases frictional unemployment

4 0
2 years ago
Suppose Deborah gets a sales bonus at her place of work that gives her an extra $600 of disposable income. She chooses to spend
Mashutka [201]

Answer:

Option (d) is correct.

Explanation:

Suppose Deborah gets a sales bonus at her place of work,

Disposable Income, YD = $ 600

Consumption, C = $480

Savings , S = $ 120

Marginal propensity to consumer, MPC:

= Consumption ÷ Disposable Income

= 480 ÷ 600

= 0.8

Therefore, Deborah marginal propensity to consume (MPC) is 0.80

Option (d)

7 0
3 years ago
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