Assume PBMC makes the policy change, and TICI's Sales and Trading, Shorman Stanley and Union Brokers...

 

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Assume PBMC makes the policy change, and TICI's Sales and Trading, Shorman Stanley and Union Brokers of Switzerland (PBMC competitors) react by making similar changes. As a result, gross sales remain at $1,500,000. How does this impact the firm's after-tax profitability? With sales remaining at $1,500,000 after the change in terms, the policy change would result in a slight incremental gain in net income of? The margin loan contract between a prospecting client and the brokerage firm is called the hypothecation agreement. If the notional principal on the loan is $100,000 with 5.75% Discount Interest and 50% Compensating Balance (ie., the investor's equity in the transaction) a. what is required face value of the loan at origination? = b. Interest payment per month is? = The compensating balance (ie., the margin amount) is? = d. Usable funds? = e. Periodic interest rate? f EAR? = %3D %3D !! %3D Assume PBMC makes the policy change, and TICI's Sales and Trading, Shorman Stanley and Union Brokers of Switzerland (PBMC competitors) react by making similar changes. As a result, gross sales remain at $1,500,000. How does this impact the firm's after-tax profitability? With sales remaining at $1,500,000 after the change in terms, the policy change would result in a slight incremental gain in net income of? The margin loan contract between a prospecting client and the brokerage firm is called the hypothecation agreement. If the notional principal on the loan is $100,000 with 5.75% Discount Interest and 50% Compensating Balance (ie., the investor's equity in the transaction) a. what is required face value of the loan at origination? = b. Interest payment per month is? = The compensating balance (ie., the margin amount) is? = d. Usable funds? = e. Periodic interest rate? f EAR? = %3D %3D !! %3D

Answer rating: 100% (QA)

a The required face value of the loan at origination is 105000 b The inter... View the full answer