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jasenka [17]
4 years ago
14

rue or False: The following statement accurately describes how firms make decisions related to issuing new common stock. Taking

flotation costs into account will reduce the cost of new common stock.
Business
1 answer:
Eddi Din [679]4 years ago
7 0

Answer: False

Explanation:

Flotation costs are the costs that are incurred by a company whenever the company is issuing new securities. They are fee that are charged by the financial institutions for services such as legal and underwriting services.

Flotation costs are additional costs associated that are incurred when a new common stock is raised.

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Once the traditional IRA or Roth IRA is established, you decide to invest the proceeds in a mutual fund. Identify the type of mu
IrinaK [193]
The type of mutual fund to select depends on the person's goals and attitude towards risks. Generally, mutual funds are a pool of paper assets of different people that is managed by fund managers as they buy stocks from investments in the market.

There can be three types of source of mutual fund: stocks, bonds and balanced fund. Stocks are shares of big companies, say for example, Proctor & Gamble. They sell their shares to the market that is open to all potential investors. When a fund manager buys shares, he becomes a co-owner of the company. Thus, if the profit of the company increases, you are also given with additional dividends. However, the risk is high because if the company goes bankrupt, you lose your money. Bonds are owned by government agencies that are open to the public to borrow their money to be used on projects for the country. This is low risk because the government promises to return the amount of money borrowed plus a fixed interest. Balanced fund is the median of both because fund managers source their mutual funds both on stocks and bonds.

So, if you are aggressive, then stocks are fit for you. If you are conservative, better stick with bonds because there is a guarantee. If you are a mix of both, balanced fund is your option.
3 0
4 years ago
Characteristics of just-in-time partnerships do not include:
julia-pushkina [17]
<span>Characteristics of just-in-time partnerships do not include:
a.focus on core competencies.
b.removal of in-transit inventory.
c.long-term contracts.
d.large lot sizes to save on setup costs and to gain quantity discounts.
e.produce with zero defects.


The answer is B</span>
5 0
3 years ago
Routsong Corporation had the following sales and production for the past four years:
andreyandreev [35.5K]

Answer:

B. Because of the changes in production levels, under variable costing the unit product cost will change each year

Explanation:

In variable costing, Product Cost is the total of variable manufacturing costs only. Whereas in Absorption costing, the Product cost is the total of both variable and fixed manufacturing overheads.

The following statements is not correct : Because of the changes in production levels, under variable costing the unit product cost will change each year.

6 0
3 years ago
Which of the following is being described when a security professional develops and publishes a password policy specifically tai
Dahasolnce [82]

Answer: 3. Implementing security control diversity

Explanation:

Risks of organizations varies. The control method used in combating various risks is relative to the business and the types of risks it is exposed to.

So this implementation of this security is relative to the company.

4 0
3 years ago
Property taxes in a particular district are 2​% of the purchase price every year. If you just purchased a ​$150,000 ​home, what
baherus [9]

Answer:

the present value of the property taxes is 75,000

Explanation:

We can determinate the present value of all the future payment using the perpetuity formula:

150,000 x 2% = 3,000 property taxes per year as this will be paid indefinitely and the cash flow are equal; it is a perpetuity.

C/r = PV

3,000 / 0.04 = PV = 75,000

8 0
3 years ago
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