Answer:
$36.79
Explanation:
Calculation to determine What will be the IPO price per share
First step is to calculate the Cumulative shares
Cumulative shares = 375,000 + 400,000 + 250,000 + 400,000 + 2 million
Cumulative shares = 3.425 million
Now let calculate the IPO price
IPO price = $14 × $9 million / 3.425 million
IPO price= $36.79
Therefore What will be the IPO price per share is $36.79
Answer:
$44,955.10
$38,131.84
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Investment X
Cash flow each year from year 1 to 9 = $6900
I = 7%
PV = $44,955.10
Investment Y
Cash flow each year from year 1 to 5 = $9300
I = 7%
PV = $38,131.84
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer:
<h2>The answer to the given question would be option C. or an increase in the real interest rate on U.S. assets.</h2>
Explanation:
- An increase in the real interest rate on US financial assets basically imply a higher financial cost of borrowings of these assets which would consequently reduce the demand for US assets among foreign investors or borrowers.
- As the real interest rate on US assets goes up,the foreign investor have to pay more as interest on any borrowing of the US assets in US dollars.Therefore,the periodic interest payments in terms of US dollars also increases for the foreign or international financial investors which will eventually reduce the demand for US dollars in the foreign exchange market for US dollars.
- As a result of such occurrence,the demand curve for US dollars would shift leftward or downward thereby reducing the currency value of US dollars relative to other foreign or international currencies.
Answer:
D. The ability of the firm to change its plant size.
Explanation:
The long run in economics is a period of time in which all inputs in the production process can be varied. It allows firms to have the ability to change its plant size that would be more or less fixed in the short run. The factors of production used in the long run are variable inputs. Variable inputs are inputs that can be change or altered in a production system. The firm in the long run has the abilities to respond to changes in the market and demand and can build bigger factory or larger plants.
Answer:
Independent agencies; reliability and stability
Explanation:
Bonds are securities which help to raise funds. Bonds generally rated by independent agencies, which rate bonds based on their performance and reliability. Independent agencies forecast the future prices of bonds based on historical data. Investors highly rely on bond ratings because it helps them to identify the best investment decision. Investors usually invest in bonds which are rated higher due to their reliability and future predictions.
