Suppose that Intel currently is selling at $40 per share. You buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%.
What is the percentage increase in the net worth of your brokerage account if the price of Intel immediately changes to (a) $44; (b) $40; (c) $36?
Answer:
Initial worth of brokerage account = 500 × $40 = $20,000
a). if the price changes to $44, then:
worth of brokerage account becomes = 500 × $44 = $22,000
∴ percentage increase = (22,000 - 20,000) / 20,000 = 10% increase.
b). if the price changes to $40, then:
worth of brokerage account becomes = 500 × $40 = $20,000
∴ percentage increase = (20,000 - 20,000) / 20,000 = 0 or no increase.
c). if the price changes to $36, then:
worth of brokerage account becomes = 500 × $36 = $18,000
∴ percentage increase = (18,000 - 20,000) / 20,000 = 10% decrease
Answer:
The journal entry to record the dividend declaration is:
June 2, 202x, cash dividends are declared
Dr Retained earnings 4,800
Cr Dividends payable 4,800
The journal entry to record the payment of the dividend would be:
Dr Dividends payable 4,800
Cr Cash 4,800
When we calculate dividends, only outstanding stocks are included in the distribution: total outstanding stocks = issued stocks - treasury stocks = 1,000 - 200 = 800
Answer:
B. 2,600 to 2,000.
Explanation:
tax revenue = units x tax rate
units = tax revenue / tax rate = 6,000/3 = 2,000
2,000 will be the quantity after taxes.
6000 goverment revenue - 3900 consumer surplus - 3000 producer surplus
900 deathweight loss
(tax x ↓unit)/2 = deathweight loss
(3 x ↓unit)/2 = 900
(3 x ↓unit) = 900 *2
↓unit = 1800/3 = 600
It decrease to 2000 from 2600
A $3 per unit tax creates a wedge between the price paid by consumers and the price received by producers, representing a production cost increase. This results in a leftward shifted supply curve, with reduced consumer and producer surplus. The burden of the tax is shared, decreasing the equilibrium quantity of goods.
When a $3 per unit tax is imposed on a good, the government creates a wedge between the price paid by consumers and the price received by producers. The distance between these prices equals the tax rate.
The new market price is the price paid by consumers, but sellers receive less per unit sold as they pay the difference (tax) to the government. This tax is akin to an increase in production cost, symbolized by a leftward shift of the supply curve. The new supply curve intercepts the demand at the new quantity.
The tax revenue is found by multiplying the tax per unit by the total quantity sold. The tax incidence, or burden, is shared by both consumers and sellers. In this case, the consumers' surplus decreased by $3,900 and the producers' surplus decreased by $3,000, causing a total tax revenue of $6,000 and a decrease in the equilibrium quantity of goods.
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Matt and Claire go into an interview for the same position.This type of interview is called Unstructured interview.
Unstructured interview is defined as one in which the questions asked are not prearranged. Rather they are spontaneous and questions to be asked are formulated during the course of the interview.
On the other structured interview is when questions are prearranged and candidates are asked the same questions.
Learn more about Unstructured Interview, refer to the link:
Answer:
Unstructured interview
Explanation:
Unstructured interview is defined as one in which the questions asked are not prearranged. Rather they are spontaneous and questions to be asked are formulated during the course of the interview.
On the other structured interview is when questions are prearranged and candidates are asked the same questions.
So when Matt and Claire go into an interview for the same position and they get asked very different questions depending on how the interview is going, they are answering unstructured interview questions.
Answer:
$37,800.00
Explanation:
Maize Company cost structure is such that $20 out of the $35 is a variable cost and the balance of $15 is a fixed cost.
So the fixed cost will always be incurred whether or the special order is accepted.
So he relevant cost of accept the special order from the foreign wholesaler
is the relevant variable cost which is the variable cost of production and the additional print logo cost
Also remember that whether or not the order is accepted the fixed cost will still be incurred and besides Maize still has excess capacity
A relevant variable cost is the future cash cost that would be incurred as a result of producing and selling a unit of the product.
Relevant cost = $20 + $3
= $23
The increase in net income = (selling price - relevant cost)× unit sold
=( $30 - $23 ) × 5,400
$37,800.00
Answer:
Its the ability of a nation to produce a good or a service at the lowest opportunity cost.
Explanation:
According to the law of comparative advantage, a nation should produce only a good or a service if the opportunity of cost of producing it is among the lowest among its trade partners. It will give a nation or a company to sell the goods at the lowest possible prices and therefore gathering the maximum economic growth.
This law will allow people to specialize in certain skills therefore reducing the cost of production in the long run, therefore increasing the economic gains. Similarly, a nation should import goods, if the opportunity cost of producing that good is higher than partner nations. Thus, the international trade will allow people to specialize in their areas of expertise and increase their productivity over time. Therefore, the overall global economic output will increase, increasing the people's standards of living.