Answer:
Explanation:
Present Value of Entire Underwriting Compensation=
Commission as a fixed % of Gross Proceeds + PV of Gain by exercising option to purchase shares.
Fixed Commission= 5000000*0.06
=300000
Gain by exercising option=200000*(12-5)
=1400000
PV of Gain =1400000/(1+0.15)
=1400000/1.15
=1217391.30
PV of Total Compensation=300000+1217391.30
=1517391.30
Answer:
A. maximizes the value of the firm.
Explanation:
Managers should select the capital structure that "A", maximizes the value of the firm.
He may select a capital structure with full debt or no debt, based on certain fact and conditions.
Capital Structure may result in Minimum taxes and generate Current level of Income but the most important is to maximize the value of the firm.
The alcoholic beverages in a private club are usually alcoholic.
According to the graph A + B + C + D + E + F + G it represent the amount of consumer surplus domestic consumers will enjoy after the tariff has been imposed.
<h3>What concept will be applied when the domestic nation acts as a price taker, and its consumption and production have no impact on the global price?</h3>
Due to its tiny size in comparison to global markets, the domestic market is a price taker, and neither its production nor consumption affects global prices. Therefore, the nation uses the international price as the domestic price for any good, service, or resource.
<h3>
What distinguishes a tariff imposed by a big country from a small country's tariff?</h3>
Due to its size, the huge nation's tariff not only lowers the amount of the thing that is sought, but it also could lower the product's global price.
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