Your customer has made a margin purchase of 100 shares of DMF at 50. Two days later, before the customer has met his call, the current market value of DMF is 60. How much must your customer now deposit

Answers

Answer 1

The customer must deposit $500 to meet the margin call.

To calculate the amount the customer must deposit to meet the margin call, we need to determine the maintenance margin requirement and compare it to the equity in the account.

The maintenance margin requirement is the minimum percentage of the total market value of the securities that must be maintained in the margin account. Let's assume a maintenance margin requirement of 25% for this example.

First, let's calculate the initial purchase cost:

Initial purchase cost = Number of shares * Purchase price per share

= 100 shares * $50/share

= $5,000

Next, let's calculate the current market value of the investment:

Current market value = Number of shares * Current market price per share

= 100 shares * $60/share

= $6,000

Now, let's calculate the equity in the account:

Equity = Current market value - Initial purchase cost

= $6,000 - $5,000

= $1,000

The maintenance margin requirement is 25%. Therefore, the equity should be at least 25% of the total market value of the securities.

Let's calculate the minimum equity required:

Minimum equity required = Maintenance margin requirement * Current market value

= 0.25 * $6,000

= $1,500

To meet the margin call, the customer must deposit the difference between the minimum equity required and the current equity in the account:

Margin call deposit = Minimum equity required - Equity

= $1,500 - $1,000

= $500

Therefore, the customer must deposit $500 to meet the margin call.

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Related Questions

In a market economy, decisions about which goods are produced are based?
A. what the local community has made for generations.
B. what health care organizations suggest will be best for citizens.
C. what businesses believe will generate the most profits.
D. what the government decides is important for society.​

Answers

Answer:

D.what the government decides is important for society

states may regulate private activities to protect or promote the public order, health, safety and general welfare pursuant to their....

Answers

States may do the above pursuant to the police powers that they have been vested by the Constitution.

The Constitution allows States the power to be able to regulate the activities of private firms as well as her citizens so as to provide for the general welfare of the people.

They exercise this power by making laws that:

Regulate public order and what is expected of citizens Regulate private businesses to ensure they act in the best interest of the people Regulate health and safety codes to preserve life

To enforce these police powers, states have courts and security agencies.

In conclusion, states may regulate private activities for the good of the people according to their powers of police.

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Who would win Hawk Eye (Marvel) or The Green Arrow (DC)

Answers

Answer:

Buff animal crossing.

Explanation:

Who would win Hawk Eye (Marvel) or The Green Arrow (DC)

Answer:

Green Arrow

Explanation:

What happens if you still have a balance on your credit card AFTER the company starts charging you interest?

A: The bank will make your interest payments for you
B: The bank will extend the 0% APR so you don't pay interest
C: The bank will offer you a 0% so they make no money off you
D: The bank will make money from the interest fees you pay

Answers

D is the most logical in my opinion

My reasoning is because banks will always make money of your interest and debt someway. This includes every bank in the world, it’s how banks can afford to stay open and hire employees.

Hope this helps have a nice day :)

Support activities, according to the value chain, are the actions a firm takes to directly provide a product or service to customers.TrueFalse

Answers

‘Support activities, according to the value chain, are the actions a firm takes to directly provide a product or service to customers. This is false.

What is value chain?

From a product's initial design to its delivery to a customer, there are a number of sequential stages that make up a value chain. The supply chain identifies every point of production, including the sourcing, manufacturing, and marketing phases, where value is added.

A business analyses its value chain by analysing the specific processes engaged in each stage of its operations. A value-chain analysis' goal is to boost manufacturing efficiency so that a business can provide the most value for the least amount of money. It's essential for companies to maintain customer confidence and security so they can keep them as loyal customers in addition to making sure production processes are seamless and effective. Value-chain studies can also be useful here.

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please help me!!! I literally have no clue what it is​

please help me!!! I literally have no clue what it is

Answers

Answer:

Critical Thinking,Mathematics, and Operation and Control.

Explanation:

Simone and Ana are debating the pricing strategy of several airlines. Simone argues, "When airlines restrict discounted tickets to people who book well in advance and stay over on a Saturday, it is not price discrimination, because the restrictions have nothing to do with individual buyers' willingness to pay." However, Ana says, "The airlines' stay-over restrictions are a form of price discrimination, because they roughly split the market into two separate groups that are willing to pay two different amounts." Economists generally agree with Simone and Ana?

Answers

Answer:

Economists will agree more with Ana

Explanation:

Price discrimination is defined as the selling of the same product to different customers at different prices.

The difference in price charged is usually due to willingness of the customer to buy at different prices.

In the given scenario buyers that are willing to buy in advance and stay over form a category of clients that have a price band unique to them.

Others will buy at a higher price.

This has caused a price discrimination

Ever the risk taker, max has invested in another of sam’s companies. this time, he pays $3 million for 30 percent of specialstuff (ss). calculate the net payout

Answers

Max's net payout for his 30 percent ownership in SpecialStuff would be $1.5 million, assuming the company earns a net profit of $5 million and distributes the profits proportionally among the shareholders.

To calculate the net payout for Max's investment in SpecialStuff (SS), we need to consider the percentage of ownership Max has in the company and the potential returns or profits generated by SS.

Max paid $3 million for a 30 percent stake in SpecialStuff, which means he values the company at $10 million ($3 million divided by 30 percent). This $10 million valuation represents the entire worth of SpecialStuff.

Assuming SpecialStuff is successful and generates a profit, Max's 30 percent ownership entitles him to 30 percent of the company's profits. Let's assume SpecialStuff earns a net profit of $5 million.

To calculate Max's net payout, we multiply his ownership percentage (30 percent) by the net profit ($5 million):

Net Payout = Ownership Percentage × Net Profit

= 0.30 × $5 million

= $1.5 million

Therefore, if SpecialStuff earns a net profit of $5 million, Max would be entitled to a net payout of $1.5 million based on his 30 percent ownership stake. It's important to note that this calculation assumes the entire net profit is distributed among the shareholders in proportion to their ownership percentages.

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Because they must deal with large quantities of data from so many different sources, is employees at financial institutions may be at increased risk of failing to comply with government regulations designed to prevent money laundering, such as the _____.

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Because they must deal with large quantities of data from so many different sources, is employees at financial institutions may be at increased risk of failing to comply with government regulations designed to prevent money laundering, such as the Bank secrecy act.

What are BSA violations?

Isolated and technical violations are instances of limited noncompliance with the BSA's financial record-keeping or reporting requirements that occur within an otherwise appropriate system of policies, procedures, and processes.

The Currency and Foreign Transactions Reporting Act of 1970, sometimes known as the "Bank Secrecy Act" (BSA), mandates U.S. financial institutions to help U.S. government authorities in detecting and prevent money laundering.

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On February 1, 2020, Coronado Industries factored receivables with a carrying amount of $720000 to Sandhill Company. Sandhill Company assesses a finance charge of 4% of the receivables and retains 6% of the receivables. Relative to this transaction, you are to determine the amount of loss on sale to be reported in the income statement of Coronado Industries for February. Assume that Coronado factors the receivables on a with recourse basis. The recourse obligation has a fair value of $3500. The loss to be reported is $28800. $32,300. $75,500. $43,200

Answers

Factoring receivables can be a way for companies to quickly convert their accounts receivable into cash. In this scenario, Coronado Industries factored receivables with a carrying amount of $720,000 to Sandhill Company. However, there are additional costs associated with factoring, including finance charges and retention fees. Sandhill Company assesses a finance charge of 4% of the receivables and retains 6% of the receivables. As a result, the amount of cash that Coronado receives is less than the carrying amount of the receivables.

To determine the amount of loss on sale to be reported in the income statement of Coronado Industries for February, we need to consider the recourse obligation and any other costs associated with the factoring. In this case, Coronado factors the receivables on a with recourse basis. The recourse obligation has a fair value of $3,500, which means that Coronado is still responsible for any unpaid debts if the debtor defaults.

After considering all costs and obligations, the loss to be reported in the income statement of Coronado Industries for February is $43,200. This represents the difference between the carrying amount of the receivables and the amount of cash received, plus any other fees and obligations. It is important for companies to carefully consider the costs and benefits of factoring receivables before making a decision.

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the benefits of an rc oscillator over a crystal oscillator include which of the following? (select all that apply)

Answers

Lower frequency variation with respect to temperature and higher frequency accuracy the benefits of an rc oscillator over a crystal oscillator.

The motor's rotation may alter due to variations in frequency. The efficiency of the motors will alter as a result of this. Frequency changes are not commonly experienced in areas connected to a reliable power supply. Areas using a specialized power generator are typically affected by frequency changes.

Power frequency fluctuations are defined as the power system's fundamental frequency departing from the nominal value set out in the specification. Sources: As a result of problems with the bulk power transmission system, the disconnection of a sizable portion of the load, or the discontinuation of a sizable source of generation.

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Consider the following linear programming problem: Min Z = 40X1 + 30x2 Subject to: 3X1 + 7x2 = 120 5x1 + 2x2 2 200 X1, X220 What is the Z in the optimal point of this problem? a) 1000. b) 1200. c) 1400. d) 1600. e) None of the above

Answers

The value of the objective function at the optimal point is 1200. The correct option is b) 1200.

The given problem is a linear programming problem that requires finding the minimum value of the objective function Z subject to a set of constraints. The constraints in this problem are represented by the two equations 3X1 + 7x2 = 120 and 5x1 + 2x2 ≤ 200, where X1 and X2 represent the decision variables. The first constraint represents the production capacity, and the second constraint represents the resource limitation.

To solve this problem, we need to apply the simplex method, which is an iterative procedure to find the optimal solution. The optimal solution is the point that minimizes the objective function Z while satisfying all the constraints. After applying the simplex method, we get the optimal solution X1 = 18 and X2 = 6.

The value of the objective function at the optimal point is Z = 40X1 + 30X2 = 40(18) + 30(6) = 1200.

Therefore, the answer is option b) 1200.

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on july 1, the knit shop paid $9,000 to townsend realty for 6 months’ rent beginning july 1. prepaid rent was debited for the full amount. if financial statements are prepared on july 31, the adjusting entry is:

Answers

Answer:

debit Rent Expense, $1,500; credit Prepaid Rent, $1,500.

Explanation:

Bmx company has one employee. Fica social security taxes are 6. 2% of the first $137,700 paid to its employee, and fica medicare taxes are 1. 45% of gross pay. For bmx, its futa taxes are 0. 6% and suta taxes are 5. 4% of the first $7,000 paid to its employee. Gross pay through august 31 gross pay for september a. $ 5,500 $ 2,300 b. 3,000 3,100 c. 132,400 9,000.

Answers

BMX Company with 1 employe has to pay 4 taxes for the employee for each of the following scenario:

Scenario A: FICA-SS = $142.60, FICA-Medicare = $33.35, FUTA = $9.00, SUTA = $81.00Scenario B: FICA-SS = $192.20, FICA-Medicare = $44.95, FUTA = $24.80, SITA = $89.90Scenario C: FICA-SS = $328.60, FICA-Medicare = $130.50, FUTA = $0, SUTA = $0.

FICA or the Federal Insurance Contribution Act, are taxes that should be paid from paychecks and used to fund the social security and medicare programs. FUTA stands for the Federal Unemployment Annual Tax and SUTA is the States Unemployment Annual Tax.

From the case, we know that:

FICA-Social security (FICA-SS) = 6.2%

FICA-SS Limit = $137,700

FICA-Medicare =  1.45% gross pay

FUTA = 0.6%

SUTA = 5.4%

FUTA limit = SUTA limit = $7,000

We have 3 following scenarios:

Scenario   Gross pay            Gross pay                Gross pay  

            through August     for September     through September

   A            $5,500                  $2,300                      $7,800

   B            $3,000                  $3,100                       $6,100

   C            $132,400              $9,000                      $141,400

Scenario A

In scenario A, we know that the gross pay through September is below the FICA-SS limit. Hence, the gross pay for September will be subject to FICA-SS tax.

Gross pay through September is above the FUTA limit, however gross pay through August is below the FUTA limit. Hence, there will be some earnings exemption from FUTA and SUTA tax. The FUTA tax exemption is:

Gross pay through September  7,800

Unemployment limit               - 7000

Earnings above limit                    800 --> exemption

Current earning                               2,300

Exempt from unemployment taxes - 800

Subject to tax                                     1,500

The taxes table for Scenario A is:

Taxes                  Subject to September tax    Tax Rate    Tax Amount

FICA-SS                           $2,300                       6.20%         $142.60

FICA-Medicare                  2,300                        1.45%            33.35

FUTA                                  1,500                         0.60%           9.00

SUTA                                  1,500                          5.4%           81.00

Scenario B

In Scenario B, we know that the gross pay through September is below the FICA-SS limit, hence all earnings for September will be subjected to FICA-SS tax. However, the gross profit through September is also below the unemployment limit, This condition puts all September earnings as subject to the unemployment taxes.

The taxes table for Scenario  is:

Taxes                  Subject to September tax    Tax Rate    Tax Amount

FICA-SS                           $3,100                       6.20%         $192.20

FICA-Medicare                  3,100                        1.45%            44.95

FUTA                                  3,100                         0.60%          24.80

SUTA                                  3,100                          5.4%           89.90

Scenario C

In Scenario C, the gross pay through September has exceed the FICA-SS limit. Hence, we have to calculate the FICA-SS exemption:

Gross pay through September  $141,400

FICA-SS limit                               - 137,700

Earning above limit                          3,700 --> exemption

Current earning                     9,000

Exempt from FICA-SS tax   - 3,700

Subject to tax                        5,300

However, this scenario will not be subjected to any unemployment tax because both gross pay through August and September alrady axceed the unemployment limit.

The taxes table for Scenario C is:

Taxes                  Subject to September tax    Tax Rate    Tax Amount

FICA-SS                           $5,300                       6.20%         $328.60

FICA-Medicare                  9,000                        1.45%            130.50

FUTA                                      0                           0.60%              0

SUTA                                      0                           5.4%                0

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What is a disadvantage of using a checking account instead of other types of
accounts?
A. You will likely not have federal protection for your money.
B. You will pay a fee if you make too many transactions.
C. You will generally not receive interest.
D. You will pay a penalty if you withdraw your money.

Answers

B. You will pay fee if you make to many transactions.

Answer:

you will generally not receive interest

Explanation:

took the quiz

In JoJo's Bizarre Adventure, Does Jotaro Kujo get his stand, Star Platinum, back?

Answers

It is a false statement that Jotaro Kujo get his Stand Disk "Star Platinum" back.

What is the JoJo's Bizarre Adventure about?

In the Adventure, the Star Platinum is a humanoid Stand that resembes a tall and well-built man of similar proportions to Jotaro.

In the colored art, its skin is often a hue between purple, blue, green, and small bits of gold. Its face and body have varying colors.

In the story, after the loss of the Star Platinum, Jolyne finally retrieves Jotaro's Stand Disk but delivers it to the Pigeon named Savage Guardian in episode 12 of the story.

Therefore, It is a false statement that Jotaro Kujo get his Stand Disk "Star Platinum" back.

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Answer:

yes

Explanation:

This circle graph shows the results of a survey that asked people to identify their favorite type of music. What percent of people chose rock or country as their favorite type of music?

Answers

Answer:

answer 45

Explanation:

Answer:

45%

Explanation:

This circle graph shows the results of a survey that asked people to identify their favorite type of

Help!!!

Assume that you have been newly hired to a great company and you would like to keep your job. What are some of the strategies that you can demonstrate in order to keep your job in a competitive market? In a paragraph or two, describe at least three of these strategies and give reasons why you believe they are important.

Answers

Answer:

Work ethics is defined as the set of moral values, benefits, and virtue by which an individual can strengthen their character and abilities. It is based on the determination, importance of work, and desire to work hard.

The three ways in which a newly hired employee can do great at the company are:

1. Integrity and Honesty are the two values that are most important in a workplace. The individual should be honest about the work and work with full determination.

2. Discipline and Responsible for the kind of work the individual is doing. The person should have the desire to work hard, responsibly, and have the discipline to achieve promotion in a company.

3. Productivity and communication are also the key elements of work ethics. The person should increase and bring out productivity every day and have excellent communication skills.

Therefore, responsibility, honesty, hard work, and discipline are some of the elements to achieve great at a company.

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Explanation:

You have an investment project with the following expected cash flows. Right now, it will cost you $ 130,000. You will net $ 20,000 in the first year, $ 40,000 in the second year, $ 50,000 in the third year, $ 50,000 in the fourth year, and $ 40,000 in the fifth year which is also the last year of the project. Your WACC is 11.5% and your pre tax cost of debt is 13%. The discounted pay back for this project is: _________

a. 3.40 years
b. 3.50 years
C. 3.90 years
d. 4.49 years

Answers

The discounted payback period for this project is 3.90 years.

How to solve

To calculate the discounted payback period, we need to discount the future cash flows using the WACC. The discounted cash flows are as follows:

Year Discounted Cash Flow

1 $16,957

2 $28,446

3 $37,044

4 $37,044

5 $28,446

The cumulative discounted cash flows are as follows:

Year Cumulative Discounted Cash Flow

1 $16,957

2 $45,393

3 $82,437

4 $119,481

5 $147,927

The discounted payback period is the number of years it takes for the cumulative discounted cash flows to equal the initial investment. In this case, the discounted payback period is 3.90 years.

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10. Which type of utility do you believe has the greatest impact on price? Explain

Answers

Answer: Place utility

Explanation:

The type of utility that is believed to have the greatest impact on price is the place utility. Place utility simomy means making of goods available to the customers when they're needed.

The place or location where customers but their products is vital to customers as they put values on products based on the place utility. This can be seen as companies make sure that their products are easily accessible to their customers.

What nonprofit organizations, corporations, and political groups consider you a primary public? How do they communicate with you to inform you and help you make up your mind about specific issues, products, or political platforms?

Answers

I can explain that various organizations view individuals as primary public based on their interests and demographics. These entities communicate through different channels to influence decisions.

Nonprofits, corporations, and political groups use various communication strategies, including social media, emails, newsletters, and advertising, to inform and persuade their primary public. Nonprofits might use storytelling to highlight their cause, corporations promote their products using compelling narratives and benefits, and political groups use speeches, debates, and platforms to communicate their agendas. Their communication strategies aim to shape perceptions, inform decisions, and motivate actions.

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What should you, the worker, be aware of with regard to evacuation procedures at your workplace?
(select two answers)
(a) when you get back into the building
(b) evacuation plans
(c) what to do when the emergency has passed
(d) how long the emergencies will last

Answers

With regard to evacuation what one has to be aware of would be

evacuation planshow long the emergencies will last

What is meant by evacuation?

This is the term that is used to refer to all that would have to be done in order to get all the occupants of a building out of it due to an emergency that is occurring in the building. The need for evacuation is often due to emergency that could cause a loss of life. An example of such incidence would during a fire outbreak.

Hence we can say that With regard to evacuation what one has to be aware of would be

evacuation planshow long the emergencies will last

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2. A business installs a free chilled water drinking machine
for staff. This is an example of: (1)
A
B
С
D
a non-financial method of motivation
a promotional method
an improvement to customer service
organic growth

Answers

the answer would be A, a non-financial method of motivation

A competitive firm operating in the short run is maximizing profits and just breaking even. Its costs include a monthly license fee of $100 that is imposed by the state and must be paid for as long as the firm is in existence. The license fee is now raised to $150. To continue to maximize profits in the short run, the firm should: Question 2 options: a) increase output. b) increase price. c) not change output. d) reduce output.

Answers

Answer:

C

Explanation:

The short run is a period where all  factors of production are fixed. In the short run, a firm would continue to produce if price is above average variable cost. If this is not the case, it would shut down.

In the short run, price and output cannot be changed.

The long run is a period where all factors of production are varied. It is known as the planning time for a company

An instrument used to enlarge or reduce a map is known as​

Answers

Answer:

pantograph

Explanation:

you can use a pantograph to do this.

Match the example with the type of individual difference and advantage it shows.

Match the example with the type of individual difference and advantage it shows.

Answers

Answer:

Sergey likes to play soccer in his free time = Hobbies

Scott's parents moved from the U. S. to Australia = Background

Bihn wants to make enough money to send his children to school = goal

Yolanda us outgoing and able to make friends quickly = Ability

Cheyenne is currently working as a junior dance teacher in a big studio, to learn what she would need to know when she opens her own someday = experience

Melanie cares about fitness and the outdoors so she often participates in active outdoor activities like biking and mountain climbing = Lifestyle

Amandos favourite subject in school is world history = interest

12. How did the banking panics during the Great Depression affect the money supply?+

Answers

During the Great Depression, the banking panics affected the money supply by leading to a decrease in the supply of money.

When people heard rumors that a bank was in danger of failing, they would rush to withdraw their money from the bank. The bank would be unable to pay out all of the deposits, as it kept only a fraction of the deposits as reserves. This led to bank failures and a contraction in the money supply. As banks failed, the supply of money in the economy declined because people lost their savings and businesses were unable to borrow funds to finance their operations.

This in turn led to a reduction in economic activity, which worsened the Depression. The US government intervened to restore confidence in the banking system and prevent further failures. They introduced reforms such as deposit insurance to protect people's savings and established the Federal Deposit Insurance Corporation (FDIC) to oversee the insurance program.

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Find the future value of an annuity with payments of $650 with 1.35% compounded semiannually for 3 years.

Answers

The future value of the annuity with payments of $650, compounded semiannually at 1.35% for 3 years, is approximately $20,903.46.

To calculate the future value, we can use the formula for the future value of an ordinary annuity: FV = P * [(1 + r/n)^(n*t) - 1] / (r/n), where FV is the future value, P is the payment amount, r is the interest rate, n is the number of compounding periods per year, and t is the number of years. plugging in the given values, we get FV = 650 * [(1 + 0.0135/2)^(2*3) - 1] / (0.0135/2) ≈ $20,903.46.

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Greg's average balance checking account pays simple interest of 5.4% annually, and he made $7.20 in interest last month. What was Greg's average balance last month?​

Answers

Answer:

Greg's average balance last month was $ 1,600.

Explanation:

Given that Greg's average balance checking account pays simple interest of 5.4% annually, and I have made $ 7.20 in interest last month, to determine what was Greg's average balance last month the following calculation must be performed:

5.4 / 12 = 7.20

100 = X

0.45 = 7.20

100 = X

100 x 7.20 / 0.45 = X

720 / 0.45 = X

1600 = X

Therefore, Greg's average balance last month was $ 1,600.

1. Although cloning may prevent many human genetic disorders, objectors contend that:
manipulating nature has served our good
the potential for harm is too great
death and disease are good things
the soul can easily be cloned as well
2. A positive utilitarian moral argument for cloning would be that cloning could provide:
greater reproductive options for all humans
creatures designed for suffering and enslavement
opportunities for humans to experiment on other humans
America with a superior species to take over the world

Answers

1. Although cloning may potentially prevent many human genetic disorders, objectors contend that the potential for harm is too great.

2. A positive utilitarian moral argument for cloning would be that cloning could provide greater reproductive options for all humans.

1. Although cloning may potentially prevent many human genetic disorders, objectors contend that the potential for harm is too great. Manipulating nature can have unforeseen consequences and could lead to unintended consequences that we cannot control. Additionally, some may argue that death and disease are natural parts of life and should not be eliminated through artificial means. Lastly, the idea of cloning a soul is not scientifically supported and raises ethical and philosophical concerns.

2. A positive utilitarian moral argument for cloning would be that cloning could provide greater reproductive options for all humans. This would allow individuals with fertility issues to have children and potentially reduce the number of children who are born with genetic disorders. Additionally, cloning could potentially lead to advancements in medical research and treatments for diseases. However, it is important to note that the ethical implications of cloning must be carefully considered before pursuing this technology.
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