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Klio2033 [76]
2 years ago
15

Currently, you own 5.4 percent of the outstanding stock of Keiffer Industries. The firm has decided to issue additional shares o

f stock and has given you the first option to purchase 5.4 percent of those additional shares. Which one of the following will you be participating in if you opt to purchase the shares you have been offered
Business
1 answer:
taurus [48]2 years ago
3 0

We will be participating in (A) rights offer if you opt to purchase the shares you have been offered.

<h3>What is Rights Offering?</h3>
  • A rights offering (rights issue) is a set of rights granted to existing shareholders to purchase more stock shares in proportion to their existing holdings, known as subscription warrants.
  • These are considered a sort of option since they enable stockholders of a firm the right, but not the responsibility, to purchase more shares in the company.
  • The subscription price at which each share may be purchased in a rights offering is often discounted relative to the current market price.
  • Rights are frequently transferrable, giving the possessor the ability to sell them on the open market.
  • Each shareholder in a rights offering receives the opportunity to purchase a pro-rata allotment of extra shares at a certain price and within a specific time frame (usually 16 to 30 days).

Therefore, we will be participating in (A) rights offer if you opt to purchase the shares you have been offered.

Know more about Rights Offering here:

brainly.com/question/17232098

#SPJ4

The complete question is given below:

Currently, you own 5.4 percent of the outstanding stock of Keiffer Industries. The firm has decided to issue additional shares of stock and has given you the first option to purchase 5.4 percent of those additional shares. Which one of the following will you be participating in if you opt to purchase the shares you have been offered?

A. Rights offer

B. Red herring offer

C. Private placement

D. IPO

E. General cash offer

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Fudgin [204]

Answer:

C)  11.65%

Explanation:

Simply input the values in the formula

Required rate of return = Risk free rate + (Beta * Market premium)

= 3.40 + (1.5 * 5.5)

= 11.65%

Treasury bonds are taken as the prevailing risk free rate.

Hope that helps.

5 0
3 years ago
Which is not a situation where ones credit svore may be used
oksano4ka [1.4K]

The lenders deliver the activity of credit bureaus and the information is compiled into credit reports while you are getting a loan.

Explanation:

The computer reads the information and splits out the score with credit scores. The number lenders are used to evaluate the repay.

If you have not used traditional credit accounts and use cash or debit without rely on any credit then nothing will be there in your credit history. There will be a lack of credit score.

The credit report don't have any information about your gender, race, religion, marital status, national origin, medical history and criminal record. The lenders consider the credit scores are at low risk if it ranges between 300-850. if the scores are below mid-600 is considered to be at high risk.

7 0
4 years ago
Over the last two years the consumer foods market has shifted toward a desire for healthier foods. The product manager of a brea
Leno4ka [110]

Answer:

Josh needs to find out if the new product is considered and healthy and desirable by the new customers.

Explanation: The focus group is a qualitative method used in marketing for getting a deeper understanding of customer preferences. Is designed to have initial insights before a product goes to market. Essentially, the research team try to identify if potential customers spontaneously associated expected characteristics with the new product, and this trigger the action of buy the product (it is valuable to them). In this case, Josh has to find out if the new cereal is considered healthier, and it is as important for the focus group to buy the cereal.

8 0
3 years ago
Assume that you pay $2,849. 84 in state property taxes every year. If your property has an assessed value of $41,302, what is yo
Alex787 [66]

The property tax rate for the assessed property of $41,302 is <em><u>0.069</u></em>.

The property tax is the value holding the property paid to the statement in the form of their charges or in the form of their state revenue.

Computation:

Given,

State property tax =$2849.84

The assessed value of property =$41,302

The tax rate is computed by dividing the tax amount by the actual value of the property.

\begin{aligned}\text{Tax Rate}&=\dfrac{\text{State Property Tax}}{\text{Assessed Value}}\\\ &=\dfrac{\$2,849.84}{\$41,302}\\\ &=0.069\end{aligned}

The tax rate upon which the property tax is paid is <em><u>0.069</u></em>, that is option d. is correct.

To know more about property tax, refer to the link:

brainly.com/question/855419

4 0
2 years ago
Pie Bakery owns 60 percent of slice Products Company's stock. During 20X8. Slice produced 100,000 bags of flour, which it sold t
Archy [21]

Answer:

Since no transactions are specified that were made out of the group ( i.e. Holding Company and Subsidiary) so, in consolidated income statement of 20x8, no COGS shall be shown for the transactions made between Pie and Slice Co.

Explanation:

In consolidated financial statements, we represent Holding ( Pie ) and Subsidiary ( Slice ) Companies as a single unit. Hence, the transactions made within the group are not considered in making of Consolidated financial statements.

However, both companies will show the sales and COGS in separate financial statements.

4 0
4 years ago
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