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devlian [24]
2 years ago
14

When reviewing the offering documents for a new issue, the FINRA Corporate Financing Department will only permit a new issue to

be sold by a member firm if the offering spread is
Business
1 answer:
Dmitrij [34]2 years ago
7 0

The FINRA Corporate Financing Department will only approve a new issue to be offered by a member firm after analyzing the offering documentation for the new issue and determining that the offering spread is reasonable and fair.

<h3>What does the finance department do?</h3>

A business's finance department is the division in charge of procuring and managing all financial resources on the company's behalf. The department oversees income and expenses in addition to ensuring that operations function smoothly with the least amount of disturbance.

<h3>How does a financial department operate?</h3>
  • Banking, leverage or debt, credit, capital markets, money, investments, and the design and management of financial systems are all included in the field of finance.
  • Micro economic and macroeconomic theories form the foundation of fundamental financial ideas.
<h3>Why is a company's finance department important?</h3>

A company's finance department is crucial in monitoring performance and developing answers to vital inquiries concerning risk management and return on investment. There won't be a green light without a profit.

learn more about finance department here

<u>brainly.com/question/22525869</u>

#SPJ4

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Larry, the owner of small hotel resort, would like to advertise his hotel in major American newspapers and magazines as a part o
timama [110]

Answer:

Serendipity

Explanation:

From the question we are informed about Larry, who is the owner of small hotel resort, would like to advertise his hotel in major American newspapers and magazines as a part of his larger strategy. However, he doesn't have enough money to do so. One day, he meets Todd, the owner of a group of newspapers and magazines, who offers him advertising space in his publications on the condition that Larry provides him with a free stay at the hotel. This is an example of Serendipity.

Serendipity can be regarded as unplanned fortunate discovery, which is a common occurrence that could take place throughout the history of a particular product invention as well as scientific discovery. It can be explained as the luck that comes to some people way as they are finding or creation of interesting things as well as valuable things by chance

5 0
3 years ago
Total assets were $78,000 and total liabilities were $42,000 at the beginning of the year. Net income for the year was $15,500,
Vaselesa [24]

Answer:

$46,500

Explanation:

Accounting equation is stated as :

Assets = Equity + Liabilities

therefore,

Equity = Assets - Liabilities

Equity at Beginning of the Period :

Equity = Assets - Liabilities

           = $78,000 - $42,000

           = $36,000

Equity at end of the Period

Closing Equity Balance = Opening Balance + Net Income - Dividends

                                       = $36,000 + $15,500 - $5,000

                                       = $46,500

6 0
3 years ago
Sonny's BBQ Company recently issued $85 par value preferred stock that pays an annual dividend of $9. Analysts estimate that the
Bond [772]

Answer:

Intrinsic value=$73.77

Explanation:

<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset.</em>

<em> According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.</em>

Price = D/Kp

D- Dividend payable

Kp- cost of preferred stock

So will need to work out the cost of equity using CAPM

<em>The capital asset pricing model (CAPM)</em>: relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c  

This model is considered superior to DVM. Hence, we will use the CAPM

Using the CAPM , the expected return on a asset is given as follows:  

E(r)= Rf +β(Rm-Rf)  

E(r) =? , Rf- 2.4%, Rm- 12.1% β- 1.01

E(r) = 2.4% + 1.23×(12.1- 2.4)%  = 12.20 %

Cost of preferred stock= 12.20 %

Using the dividend valuation model

Intrinsic value = 9/0.1220=73.77

Intrinsic value=$73.77

5 0
3 years ago
The laissez faire model is inspired by the work of which economic philosopher?
Vitek1552 [10]

Laissez faire model was inspired by John Stuart Mill's book "Principles of Political Economy" (1848). This model states that the government should not be heavily involved in the market, and should have a hands off approach.

I hope this helped! :)

3 0
2 years ago
Jim organized and operates Jim's Landscape Service. Jim did not do anything formal to create his business, but operates the land
Anni [7]

Answer:

sole proprietorship

Explanation:

sole proprietorship is a type of business which is owned and managed by one person and  there is no legal difference between  owner and  business  entity itself.

Since in this case business is under the name of Jim, it is sole proprietorship under the law

8 0
3 years ago
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