A country cannot enjoy a steady rate of economic growth if an economy suffers from low production.
There would be no way to keep up with demand, take advantage of economies of scale, etc. This would make it difficult to sustain growth into the future.
We will be participating in (A) rights offer if you opt to purchase the shares you have been offered.
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What is Rights Offering?</h3>
- A rights offering (rights issue) is a set of rights granted to existing shareholders to purchase more stock shares in proportion to their existing holdings, known as subscription warrants.
- These are considered a sort of option since they enable stockholders of a firm the right, but not the responsibility, to purchase more shares in the company.
- The subscription price at which each share may be purchased in a rights offering is often discounted relative to the current market price.
- Rights are frequently transferrable, giving the possessor the ability to sell them on the open market.
- Each shareholder in a rights offering receives the opportunity to purchase a pro-rata allotment of extra shares at a certain price and within a specific time frame (usually 16 to 30 days).
Therefore, we will be participating in (A) rights offer if you opt to purchase the shares you have been offered.
Know more about Rights Offering here:
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The complete question is given below:
Currently, you own 5.4 percent of the outstanding stock of Keiffer Industries. The firm has decided to issue additional shares of stock and has given you the first option to purchase 5.4 percent of those additional shares. Which one of the following will you be participating in if you opt to purchase the shares you have been offered?
A. Rights offer
B. Red herring offer
C. Private placement
D. IPO
E. General cash offer
Answer:
D. $30,000
Explanation:
The bond is issued on discount when the issuance price is less than the face value of the bond. The discount is expensed over the bond period until maturity. It is added to the interest expense value to expense it.
This discount will be amortized using Effective Interest method as below
Interest Payment = $5,000,000 x 8% x 6/12 = $200,000
Interest Expense = $4,600,000 x 10% x 6/12 = $230,000
Discount amortization = $230,000 - $200,000 = $30,000
Answer and Explanation:
A good number of problems usually arise with outsourcing from outside the country.
1. Different laws and regulations: this is one if not the greatest impediments to outsourcing staff for a business. The legal and tax implications of outsourcing to a different country creates the need to make sure business processes align with the legal frameworks or laws in these regions.
2. Language barriers: this aspect considers the challenges of communication when utilizing BPO services. There is the need for clear communication using US English from the example. Example outsourcing to an Asian country where English is somewhat a rarity.
3. There is also the need for increased data protection, privacy and security measures as there is more exposure to data breaches with this form of outsourcing.
4. However overall outsourcing makes available cheaper labour as well as more competent hands as is this case with US and China
Purchasing a new CD upon maturity of the current CD is commonly referred to as: rolling over. The term rollover in economics describe the <span>reinvesting funds from a mature security into a </span>new issue<span> of the same or a similar security. In this case the money is reinvested in the buying the same product because the old one is mature, </span><span>
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