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natka813 [3]
2 years ago
10

You purchased 200 shares of ABC common stock on margin at $50 per share. Assume the initial margin is 50% and the maintenance ma

rgin is 30%. You will get a margin call if the stock drops below ________. (Assume the stock pays no dividends, and ignore interest on the margin loan.)
$28.95
$35.71
$30.77
$26.55
Business
1 answer:
anygoal [31]2 years ago
3 0

Answer:

get margin call if stock drop below $35.71

Explanation:

given data

share = 200

margin = $50 per share

initial margin = 50 %

maintenance margin = 30%

to find out

margin call if the stock drops below

solution

we know equity is = 200P - 5000

and here P is margin call if stock drop

margin is express as

margin = \frac{equity}{share} = maintenance margin

\frac{200P - 5000}{200P} = 0.30

200P - 5000 = 60P

P = \frac{5000}{140}

P = 35.71

so get margin call if stock drop below $35.71

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1 year ago
Wendy wants to start a business. She knows many unaccredited investors who she knows will help her jumpstart her business. What
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Available Options are:

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C. Investors may invest no more than $1 million combined for the first year of the business.

Answer:

Option C. Investors may invest no more than $1 million combined for the first year of the business.

Explanation:

The non-accredited investors do not invest more than $1 million for first year. Furthermore, for Investor it also imposes investment in current business conditions which says that Investor can invest in its business with greater of:

1. $2000

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There is also an option which is available if the net worth of Investor exceeds above $100,000 then he can invest up to lesser of 10% of his income or net worth, otherwise he will have to follow the above conditions.

Here, it also has an upper limit, which means that the investor can not invest more than $100,000 in the subsequent year, whatever the level of net worth or income he had for the year.

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Crystal Lighting Inc. produces and sells lighting fixtures. An entry light has a total cost of $80 per unit, of which $54 is pro
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Answer:

Mark-up = 101.9%

Explanation:

<em>Mark up is the percentage of the product cost that is made as profit. It is profit expressed as a percentage of the product cost.</em>

Mark-up = profit/product cost × 100

Mark-up =  $55/54 × 100 =101.85%

Mark-up = 101.9%

4 0
2 years ago
Read 2 more answers
Micro, Inc., started the year with net fixed assets of $75,300. At the end of the year, there was $96,700 in the same account, a
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Answer:

$158,730

Explanation:

Mario incoporation started the year with a net fixed assets of $75,300

At the end of the year the net fixed assets was $96,700

The depreciation expense is $13,270

Therefore the company's net capital spending for the year can be calculated as follows

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Hence the company's net capital spending for the year is $158,730

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Answer:

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