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GaryK [48]
2 years ago
10

A commitment whereby the underwriter agrees to purchase any portion of an issue offered to existing shareholders under a rights

offerings that is left unsubscribed is known as a
Business
1 answer:
bekas [8.4K]2 years ago
6 0

A commitment whereby the underwriter agrees to purchase any portion of an issue offered to existing shareholders under a rights offering that is left unsubscribed is known as a stand-by commitment.

Commitment means the consent of the backstop parties under the Backstop Rights Purchase Agreement, and purchases of all rights offering shares that exceed the Sopris Senior Note Commitment that the rights offering participants do not purchase in accordance with the rights offering.

Commitment: With firm commitment underwriting, the underwriter guarantees that the issuer will purchase all securities for sale, regardless of whether they can be sold to the investor. This is the most desirable arrangement as it immediately guarantees all the money of the issuer.

Commitment usually refers to the insurer's agreement to assume all inventory risk. A firm commitment also means agreeing to buy and sell all IPO securities directly from the issuer. Other uses of commitments relate to loans and derivatives.

Learn more about commitment here: brainly.com/question/472211

#SPJ4

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Bamba Corporation's cost formula for its selling and administrative expense is $47,900 per month plus $52 per unit. For the mont
Oksanka [162]
I think it is D
Hope my answer help you
4 0
3 years ago
What is the after-tax cost of debt for a firm if it pays at 21% of tax rate, and pays 15% on its debt
FinnZ [79.3K]

Answer:

= 11.85%

Explanation:

After tax cost of debt = (1 - tax rate) x debt

(1 - 0.21) x 15%

0.79 x 15% = 11.85%

5 0
3 years ago
Gossip and rumor in an organization are part of the ________, which itself is a type of ________ communication channel. Multiple
MrMuchimi

Gossip and rumor in an organization are part of the <u>Grapevine</u>, a type of <u>Informal</u> communication channel.

This is because a Grapevine is a form of an informal communication channel in a business organization. In this way, the information can be diffused from any level, either from bottom to top or top to bottom.

The information passed is usually in the form of gossip and rumor. It does not have official backing or formal approaches such as through emails of the business firm or signed and stamped letters.

Hence, in this case, it is concluded that the correct answer is Grapevine; and informal.

Learn more here: brainly.com/question/12163131

4 0
3 years ago
Janet is planning to purchase the stock of Mortensen Petro, Inc. She expects the stock to pay a $1.98 dividend next year, and sh
Arada [10]

Answer: Current Price $26.65

Explanation:

Rate of return = 12.5%

dividends = $1.98

Expected Price (in a year from now) Pe= $28

Current price = Pc

R = (Pe - Pc + D)/Pa

0.1250 = (28 - Pc + 1.98)/Pc

28 - Pc + 1.98 = 0.1250Pc

-Pc - 0.1250Pc = - 28 - 1.98

- 1.125Pc = -29.98

 Pc = -29.98/(-1.1250Pc) = 26.64888889

 Pc = $ 26.65

7 0
3 years ago
If savers anticipate an inflation rate of 10 percent and require a real return of 5 percent, then savers will require an interes
malfutka [58]
In here, we can say that we are looking for the nominal interest rate. Given is the real interest rate which is 5% and the inflation rate of 10%. The nominal rate of interest is real interest rate plus the inflation rate. Savers will now require an interest rate of 15%
7 0
3 years ago
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