A margin call (also known as "maintenance call" or "house call") will be issued when the actual margin declines below the maintenance margin.
What will be an ideal response?
(a) Hence, the investor has to add cash or securities to the margin account.
(b) Otherwise, the broker may sell the securities from the account to restore the minimum percentage margin.
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A ______ is an extension of the resume and can be used to highlight creative activities such as photography and art work.
a. portfolio b. cover letter c. thank-you letter d. profile page
Anastasia is considering introducing her new line of high-end food products into Mexico. She has heard through a friend that one of her competitors is planning to do the same. Give the arguments as to why it can be better to be the first mover into the market and why it might be better to be the second.
What will be an ideal response?
Buying advance tickets for the Giraffe Massacre concert on New Year's Eve saves the buyer one-tenth of one percent on the face value of the tickets. It would be wise to buy tickets well in advance of the concert date
Indicate whether the statement is true or false.
Answer the following statements true (T) or false (F)
1. The lower the fixed-payment coverage ratio, the lower is the firm's financial leverage. 2. The higher the debt ratio, the more the financial leverage a firm has and thus, the greater will be its risk and return. 3. Typically, higher coverage ratios are preferred, but a very high ratio may indicate under-utilization of fixed-payment obligations, which may result in unnecessarily low risk and return. 4. The higher the value of the times interest earned ratio, the higher is the proportion of the firm's interest income compared to its contractual interest payments. 5. The magnification of risk and return introduced through the use of fixed-cost financing, such as debt and preferred stock is called financial leverage.