Business, 15.11.2019 23:31 azeezat728

Old economy traders opened an account to short sell 1,200 shares of internet dreams at $44 per share. the initial margin requirement was 50%. (the margin account pays no interest.) a year later, the price of internet dreams has risen from $44 to $56, and the stock has paid a dividend of $3.00 per share. a. what is the remaining margin in the account? (round your answer to the nearest whole number.) b. if the maintenance margin requirement is 30%, will old economy receive a margin call? no yes c. what is the rate of return on the investment? (round your answer to 2 decimal places. negative value should be indicated by a minus sign.)

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 22:50, chloespalding

Assume that the governance committee states that all projects costing more than $70,000 must be reviewed and approved by the chief information officer and the it senior leadership team (slt). at this point, the cio has the responsibility to ensure that management processes observe the governance rules. for example, the project team might present the proposed project in an slt meeting for a vote of approval. what does this scenario illustrate about organizational structure?

Answers: 2

continue

Business, 22.06.2019 12:10, weeman6546

Lambert manufacturing has $100,000 to invest in either project a or project b. the following data are available on these projects (ignore income taxes.): project a project b cost of equipment needed now $100,000 $60,000 working capital investment needed now - $40,000 annual cash operating inflows $40,000 $35,000 salvage value of equipment in 6 years $10,000 - both projects will have a useful life of 6 years and the total cost approach to net present value analysis. at the end of 6 years, the working capital investment will be released for use elsewhere. lambert's required rate of return is 14%. the net present value of project b is:

Answers: 2

continue

Business, 22.06.2019 20:10, janayflowers042

Russell's is considering purchasing $697,400 of equipment for a four-year project. the equipment falls in the five-year macrs class with annual percentages of .2, .32, .192, .1152, .1152, and .0576 for years 1 to 6, respectively. at the end of the project the equipment can be sold for an estimated $135,000. the required return is 13.2 percent and the tax rate is 23 percent. what is the amount of the aftertax salvage value of the equipment assuming no bonus depreciation is taken

Answers: 2

continue

Business, 22.06.2019 20:20, cjp271

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. it has a current market value of $49,000. variable manufacturing costs are $33,300 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 115,000 $ 117,000 variable manufacturing costs per year 22,900 10,100 1. calculate the total change in net income if alternative a and b is adopted. 2. should xinhong keep or replace its manufacturing machine

Answers: 1

continue

You know the right answer?

Old economy traders opened an account to short sell 1,200 shares of internet dreams at $44 per share...