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user100 [1]
1 year ago
11

a company is already public with several major stockholders. the company proposes an offering where sale proceeds for shares bei

ng sold to the investing public will go to some of the existing stockholders who want to divest of their shares as well as to the corporation. this is a combination offering. a primary offering. a secondary offering. an initial primary offering (ipo). a) i only b) ii and iii c) i and iv d) ii and iv
Business
1 answer:
Sunny_sXe [5.5K]1 year ago
7 0

Based on the fact that the company is already public, the type of offering being done is a. I only - this is a combination offering.

<h3>What type of offering is this? </h3><h3 />

The fact that the company is already public means that this is not a primary offering or an initial primary offering as these are done when the company wants to go public for the first time.

This is a secondary offering because the company wants to put more shares into the market which is the definition of a secondary offering as this happens when a company is already public.

It is also an additional public offering which would allow the company to pay of existing stockholders who would like to divest.

In conclusion, this is a combination offering.

Find out more on secondary offerings at brainly.com/question/9627261.

#SPJ1

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Jacob wants to buy three pairs of socks that normally sell at four pairs for $4.19. what is the first step jacob would use to ca
lidiya [134]
You can think of this problem in basic maths.
You have 4 pairs of socks sold at 4.19$ and you want to buy only three.
So in order to know the price of 3 pairs, you should first calculate the price of one pair of socks.
use cross multiplication to get the price of one pair as follows:
price of one pair = 4.19 / 4 = 1.0475$
Therefore,
price of 3 pairs = 1.0475 x 3 = 3.1325$
4 0
3 years ago
The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics Internation
maria [59]

Answer:

Note: See the attached excel file for the journal entries for recording events 1 to 10.

Explanation:

Also note that since the double-declining-balance depreciation is used for buildings, the depreciation rate for the building is therefore obtained as follows:

Note that double-declining-balance is a depreciation method that depreciates an asset twice the rate of the straight line depreciation method. Therefore, the double-declining-balance depreciation rate used in the excel file is calculated as follows:

Straight line depreciation rate = 1 / Number of estimated life = 1 / 10 = 0.10, or 10%

Double-declining depreciation rate = Straight line depreciation rate * 2 = 10% * 2 = 20%

Download xlsx
8 0
3 years ago
A stock has a correlation with the market of 0.64. The standard deviation of the market is 30%, and the standard deviation of th
castortr0y [4]

Answer:

0.811

Explanation:

Calculation to determine What is the stock's beta

Using this formula

Stock's beta=Market correlation*Stock standard deviation*Market standard deviation/Market standard deviation^2

Let plug in the formula

Stock's beta=(0.64)(0.38)(0.30)/0.30^2

Stock's beta=0.07296/0.09

Stock's beta=0.811

Therefore the stock's beta is 0.811

5 0
3 years ago
The maintenance of money’s value is said to depend on the monetary authorities. What might the monetary authorities do to devalu
erica [24]

Answer: One thing that could be done to devalue a currency is to issue more currency into their markets.

Explanation:

Any asset or goods can be based on how scarce the product or assets it. The authorities in the foreign markets could make more currency and this will devalue the currency because the market will be saturated. The money/currency will still be at the same value as before but the purchasing power will be reduced since there is an added supply of money in the economy.

8 0
2 years ago
Megatrends stock will generate earnings of $2 per share this year. The discount rate for the stock is 10%, and the rate of retur
lawyer [7]

Answer:

a. Find both the growth rate of dividends and the price of the stock if the company reinvests the following fraction of its earnings in the firm:

(i) 0% ⇒ g = 0, P₀ = $2/10% = $20

(ii) 20% ⇒ g = 0.2 x 10% = 2%, P₀ = $1.632/8% = $20.40

(iii) 40% ⇒ g = 0.4 x 10% = 4%, P₀ = $1.248/6% = $20.80

b. Redo part (a) now assuming that the rate of return on reinvested earnings is 15%.

(i) 0% ⇒ g = 0, P₀ = $2/10% = $20

(ii) 20% ⇒ g = 0.2 x 15% = 3%, P₀ = $1.648/7% = $23.54

(iii) 40% ⇒ g = 0.4 x 15% = 6%, P₀ = $1.272/4% = $31.80

What is the present value of growth opportunities (PVGO) for each reinvestment rate

ROE = 10%, reinvestment rates:

(i) 0%: PVGO = $20 - $2/10% = $0

(ii) 20%: PVGO = $20.40 - $2/10% = $0.40

(iii) 40%: PVGO = $20.80 - $2/10% = $0.80

ROE = 15%, reinvestment rates:

(i) 0%: PVGO = $20 - $2/10% = $0

(ii) 20%: PVGO = $23.54 - $2/10% = $3.54

(iii) 40%: PVGO = $31.80 - $2/10% = $11.80

Explanation:

sustainable growth rate = g = retention rate x ROE

PVGO = stock price - earnings/Re

5 0
3 years ago
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