All categories

1 year ago

One reason that underpricing of new issues occurs more frequently than overpricing is that?

1 answer:

7 0

One reason that underpricing of new issues occurs more frequently than overpricing is that underwriters want to reduce the risk of a firm commitment. Therefore, Option A is correct.

<h3>What is underwriting?</h3>

Some major financial institutions, including banks, insurance companies, and investment firms, offer underwriting services in which they guarantee payment in the event of damage or financial loss and accept the financial risk for liability resulting from such guarantee.

Therefore, One reason that underpricing of new issues occurs more frequently than overpricing is that underwriters want to reduce the risk of a firm commitment. Option A is correct.

Learn more about underwriting:

brainly.com/question/28200340

#SPJ4

"Your question is incomplete, probably the complete question/missing part is:"

A. underwriters want to reduce the risk of a firm commitment.

B. the demand for a new issue is typically too high.

C. underwriters earn low rates of return.

D. issuing firms demand that equity be underpriced.

You might be interested in

Amber wants to open an account, but she doesn't know which kind is appropriate. She is interested in earning a higher interest r

Tanzania [10]

Answer:

money market fund

Explanation:

Based on the information provided within the question it can be said that the kind of account that Amber should open is a money market fund. The reason being that this is a fund that has a small time of maturity (usually 13 months) and since it includes investments that are low risk but with high rewards such as cash equivalent securities. Since this is exactly what Amber is looking for then we can say that this is the account that she should open.

5 0

4 years ago

A cone-shaped container has a height of 9 inches and diameter of 2 inches. It is filled with a liquid that is worth $2 per cubic

IRISSAK [1]

Answer:

$18.84

Explanation:

Firstly, we need to find the volume of the solid shape. We have identified the solid shape to be a cone.

The volume of a cone is v = 1/3 π r^2 h

Here π = 3.14, r = d/2 = 2/2 = 1 inch and h = 9 inches

V = 1/3 * 3.14 * 1 * 1 * 9 = 9.42 cube.inches

Total value of liquid in the container is thus 9.42 * $2 = $18.84

4 0

4 years ago

Presented here are liability items for Teal Mountain Inc. at December 31, 2020. Accounts payable $321,850 FICA taxes payable $15

Maksim231197 [3]

Answer:

Total Liabilities = $2,888,450

Explanation:

<em>Teal Mountain Inc.</em>

Balance Sheet

As of December 31, 2020

<em><u>Current Liabilities </u></em>

Accounts Payable $ 321,850

FICA taxes payable $15,990

Notes Payable $41,000

Interest Payable $82,000

Unearned Rent Revenue $492,000

Income Taxes Payable $7,175

Sales Taxes Payable <u>$3,485 </u>

<em>Total Current Liabilities $963,500</em>

<em>Long Term Liabilities:</em><em> </em>

Bonds Payable $1,845,000

Less: Discount on Bonds Payable <u>($84,050)</u> $1,760,950

Notes Payable <u>$164,000</u>

<em>Total Liabilities </em> <u>$2,888,450</u>

6 0

3 years ago

According to nutt and backoff's assessment of organizational contexts in terms of their abilities to produce visionary strategic

11111nata11111 [884]

According to Nutt and Backoff's organizational contexts in terms of their ability to produce visionary change, rigid organizations are classified as those that have low resources but high acceptance of the need for change.

<h3 /><h3>What is an organizational context?</h3>

Another communication factor that affects the content and delivery of both internal and external messages is the organizational context. Organizations, or any group of individuals working together, can be small, medium, or large in size and have a flat or hierarchical structure, as well as an informal or formal appearance.
Regulations issued by the government and modifications to the legislation are two examples of the external context. market economic changes, rivalry inside the firm, etc.
The organizational setting has a crucial role in determining attitudes and behaviors (Rousseau, 1978). The findings of a study on employees' attitudes toward their jobs that was done with employees of branch banks and main office banks are presented in this paper.
Many techniques, like PEST (political, economic, social, and technological) analysis and SWOT (strengths, weaknesses, opportunities, and threats) analysis, may be used to determine the context of an organization. In order to understand the context of the organization, brainstorming with management is necessary.

To learn more about organization, refer to:

brainly.com/question/19334871

#SPJ4

7 0

2 years ago

One of the main factors when determining which companies to buy policies from is whether or not the company is _____ strong.

Valentin [98]

One of the main factors when determining which companies to buy policies from is whether or not the company is Death benefit strong.

Fundamental business information includes things like profitability, revenue, assets, liabilities, and growth potential.
You can compute a company's financial ratios using fundamental analysis to assess the viability of an investment.

Three basic valuation techniques are employed by business professionals when determining a firm's value as a continuing concern:

(1) DCF analysis,

(2) similar company analysis,

(3) precedent transactions.

<h3>What death benefit means?</h3>

To start, let's define death benefit: It's the money – lump sum or otherwise – that gets paid to your beneficiaries if you die while your life insurance policy is in effect.

Learn more about death benefit from company brainly.com/question/14275460

#SPJ4

4 0

2 years ago