A mutual fund in which shares are issued only when the fund is organized is called a(n) _________

Under its executive stock option plan, W Corporation granted options on January 1, 2021, that permit executives to purchase 15 m

stiv31 [10]

Answer:

$270m

Explanation:

We can calculate the amount that will increase W's shareholder's equity when the options are exercised as follows

Increase in equity = No Options Granted x Exercise price at the date of grant

Increase in equity = 15million x $18

Increase in equity = $270m

5 0

3 years ago

The Hays company is a regional soda company in the Midwest. It started out making a handful of sodas like cola, diet-cola, orang

valina [46]

Answer:

Competition and consumer trends

Explanation:

The Hays company makes a variety of products including sodas like cola, diet-cola, orange soda. Initially it had less competition, but more companies have entered the market.

Due to increased competition the Hays company will need to develop strategies to gain competitive advantage and by extension market in the more competitive market.

Also consumer trends is nowoving towards speciality sodas. The company will need to reduce the variety of sodas they produce and specialise in the product the consumers prefer.

8 0

3 years ago

The difference between the price an issuer receives and the offering price at which shares are sold to investors is known as:___

horsena [70]

The difference between the price an issuer receives and the offering price at which shares are sold to investors is known as The gross spreads.

Gross spread is the distinction among the underwriting fee obtained by the issuing business enterprise and the actual rate offered to the making an investment public. In different words, the gross spread is the monetary institution's reduce or benefit from the IPO listing.

The gross proceeds suggest the overall sum of money the syndicate increases from the primary traders. add the underpricing to the gross proceeds to obtain the marketplace price presented.

An underwriting unfold is the distinction among the greenback amount that underwriters, which includes investment banks, pay an issuing for its securities and the greenback quantity that underwriters obtain from promoting the securities in a public imparting. In one of the maximum common definitions, the spread is the space among the bid and the ask charges of a protection or asset, like a inventory, bond, or commodity.

Learn more about gross spreads here:-brainly.com/question/16259338

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4 0

2 years ago

In January, 20XX a customer buys 100 shares of ABC stock at $50 per share and pays a $2 commission per share. The customer recei

ANTONII [103]

Answer:

$ 52

Explanation:

Given data:

Price of the stock = $ 50

Commission per share = $ 2

Dividends received = $ 2

Now,

the dividends received is not the part of the stock's cost basis, but it is included in the taxable income for the year.

Therefore,

The customer's cost basis in the stock

= Price of the stock + commission per share

or

= $ 50 + $ 2

or

customer's cost basis in the stock = $ 52

5 0

3 years ago

You got asked to analyze a 5-year project for your firm. The project produces an annual revenue of $28,000, but requires an annu

irina [24]

Answer:

The interest rate is i = 53.82%

Explanation:

Initail cost = 18.000

Salvage value = 0

Life = 5 years

Annual revenue = 28000

Annual cost = 6000

Net revenue = 28000 - 6000 = 22000

Tax rate = 40%

Depreciation per year = (Purchase value - Salvage value ) / life = 18000 / 5 = 3600

Taxable income = Net cash flow - Depreciation = 22000 - 3600 = 18400

Tax = Tax rate * Taxable income = 0.4 * 18400 = 7360

ATCF = Taxable income - Tax + Depreciation = 18400 - 7360 + 3600 = 10960

Let IRR be i%, then,

-18000 + 10960 * (P/A, i%, 5) = 0

(P/A, i%, 5) = 18000 / 10960 = 1.642336

Using trail and error method

When i = 50% , value of (P/A, i%, 5) = 1.736626

When i = 51% , value of (P/A, i%, 5) = 1.711012

When i = 53% , value of (P/A, i%, 5) = 1.661749

When i = 54% , value of (P/A, i%, 5) = 1.638054

Using interpolation

i = 53% + (1.661749 - 1.642336) / (1.661749 - 1.638054) *(54% - 53%)

i = 53% + 0.819%

i = 53.82%

7 0

3 years ago

A mutual fund in which shares are issued only when the fund is organized is called a(n) __________ fund.