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2 years ago

When a corporation sells stock to the general public for the first time, it is referred to as a(n)?

1 answer:

4 0

When the first time a corporation sells stock to the general public, it is referred to as an initial public offering.

An initial public offering (IPO) is when shares or stocks of a private corporation are offered to the public in a new stock issuance for the first time. An initial public offering gives the private firm opportunity to raise equity capital from public donors. This action converts the private corporation into a public organization. This is a way for the original investors and founders to realize the full profit from their original investments.

To hold an initial public offering the corporation must meet the requirements of the security and exchange commission (SEC). Investment banks are usually hired by the company to handle the whole process and price market, gauge demand, and set the IPO share prices and dates. An IPO provides corporations with a lot of capital and gives them a chance to grow and expand their horizons.

You can learn more about initial public offering at

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You can invest in an account that pays simple interest or an account that pays compound interest. In either case, you plan to in

trasher [3.6K]

Answer:

You will receive $201.38 more interest if the investment is made with a compound interest rate rather than a simple interest rate.

Explanation:

Simple interest rate

We can calculate how much interests you'd obtain if you deposited the $2,600 in a simple interest rate account.

We start using the following formula for calculating the simple interests:

$I=P * r$

Where:

I are the interests per year,

P is the amount being invested,

r is the interest rate.

Replacing in the formula with the given values we have:

$I=2600*0.05=130$

We then proceed to multiply this result by the given number of years, which is 8. We get $130*8=1040$ .

Finishing with the simple interest rate, if we wanted to know how much is the investment worth at the end of a 8 year period, we must merely add the principal (the $2,600) to the total interests after the end of the period ($1040). So $2600+1040= 3640$ .

We'll use these results later.

Compound interest rate

The formula for compound interests is the following:

$I=P(1+r)^n$

Where:

I is the value of the investment after n years,

P is the principal amount being invested,

r is the interest rate,

n are the number of years the investment is compounded.

Replacing in the formula with the given values we have:

$I=2600*(1+0.05)^8=3841.38$

After the 8 year period, the investor will have $3841.38 in it's compounded interest account.

Comparing these results

We can simply substract the value of both investments at the end of a 8 year period, to determine how much more interest does the compound interest rate account give in relation to a simple interest rate account.

The values we've gotten were:

$3,640 for the simple interest rate account, and

$3,841.38 for the compounded interest rate account.

$3841.38-3640=201.38$ . Therefore the answer is: the account that pays compounded interests will pay $201.38 more to this invididual, compared to an account that pays simple interest.

8 0

3 years ago

Parent Inc. purchased 30% of the common stock of Affiliate Co. on January 1, YR01 for $5,000 and appropriately accounted for thi

blondinia [14]

Answer:

net cash from investing activities = -$4,940

operating and financing activities are not affected.

Explanation:

the journal entries should be:

January 1, socks purchased

Dr Investment in Affiliate 5,000

Cr Cash 5,000

December 31, dividends received

Dr Cash 60

Cr Investment in Affiliate 60

December 31, Affiliate reports net income

Dr Investment in Affiliate 300

Cr Revenue from investing activities 300

Only the cash flow from investing activities will be affected by Parent's investing in Affiliate. Since the company uses the equity method, the operating and financing cash flows are not affected.

The cash flow from investing activities will:

Decrease by $5,000 due to the purchase of stocks.
Increase by $60 due to the dividends received.
net cash from investing activities = -$4,940

4 0

4 years ago

Bryson Corporation purchased a limited-life intangible asset for $1,162,500 on May 1, 2018. It has a remaining useful life of 15

Nastasia [14]

Answer:

$206,667

Explanation:

Calculation for What total amount of amortization expense should have been recorded on the intangible asset by December 31, 2020

Using this formula

Total Amortization expense=Cost/useful life*Number of months

Let plug in the formula

Total Amortization expense=$1,162,500/180*32

Total Amortization expense=$206,667

Note that 15 years*12months will give us 180 months which is the useful life while May 1, 2018 - December 31, 2020) will give us 32 months

Therefore the total amount of amortization expense should have been recorded on the intangible asset by December 31, 2020 will be $206,667

5 0

3 years ago

You are aware that your neighbor trades stocks based on confidential information he overhears at his workplace. This information

Margaret [11]

Answer:

Semi-strong Form Efficient.

Explanation:

There are three levels of market efficiency as weak, semi-strong and strong.

In a semi-strong form efficient market, the stock prices change independently of the previous return points and the current information so it is not possible to predict the future stock prices.

The example given in the question, which states that the neighbor has non-public information, can be classified as a semi-strong form efficient market.

I hope this answer helps.

6 0

3 years ago

Lauren makes $150 a day as a bank clerk. she takes two days off work without pay to fly to another city to attend the concert of

Juli2301 [7.4K]

The two days Lauren doesn't receive pay would be $150 × 2 = $300
Add on the cost of transportation & lodging: $300 + $250 = $550
Finally, add the cost of the concert ticket: $550 + $50 = $600

The opportunity cost of Lauren's decision to attend the concert is $600.

8 0

3 years ago