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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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Industry is the supply side of the market.<br><br> Question 10 options:<br> True<br> False
Fynjy0 [20]

Answer:

True is the correct answer

7 0
4 years ago
Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: ($ in thousands) E-Travel P
svlad2 [7]

Answer:

E-travel-1.15

Pricecheck-0.38

Explanation:

Debt to equity ratio compares the finance provided by outsiders viz-a-viz that which is provided by the original owners of the company,the shareholders, in order to determine whether or not the company is at risk of slow growth if outsiders withdraw their funds.

Debt to equity=total liabilities/equity

E-Travel:

total liabilities is $2,854,475

total equity $2,482,681

debt-equity ratio=$2,854,475/$2,482,681=1.15

Debtholders provided more capital funding than the stockholders

Pricecheck:

total liabilities is $472,610

total equity is $1,257,614

debt-to-equity ratio=$472,610/$1,257,614 =0.38

4 0
4 years ago
Data for a Poisson with mean 10 A BigJet flight from Philadelphia to Boston has 60 seats. The high fare is $400 and the low fare
barxatty [35]

Answer:

Consider the following calculations

Explanation:

Co = low fare = $ 100

Cu = high fare - low fare = 400 - 100 = $ 300

Critical ratio = Cu/(Cu+Co) = 300/(300+100) = 0.75

In the table, look for F(q) >= 0.75 , that value is 0.792 and corresponding value of q = 12. Therefore,

Optimal protection level = 12

Refer the table for q=12, Expected shortage, L(q) = 0.5

Expected high fare seats to be sold = Mean demand - Expected shortage = 10-0.5 = 9.5

Probability of a full flight = 0.792

6 0
4 years ago
Blue Horizon Inc. is an Internet service provider. It provides a router free of charge when users sign up for a two-year wireles
ale4655 [162]

Answer:

The correct answer is the option C: a combination of the freemium business model and the pay-as-you-go business model.

Explanation:

On the one hand, the <em>freemium business model</em> is a way of ensuring future business transactions that a company can use by allowing users to utilize basic features of the service, such as in this case the router.

On the other hand, <em>the pay-as-you-go business model</em> is a way that the company can charge their customer and it does it by requesting the payment of the service in advanced of the use, no matter how much they use it.

In conclussion, Blue Horizon Inc is using a combination of both the freemium model and the pay-as-you-go model due to the fact that they offer a free router for their customer but they pay the service of internet in advanced as well.

7 0
3 years ago
Read 2 more answers
If fixed costs are $1,500,000, the unit selling price is $250, and the unit variable costs are $130, what is the amount of sales
seraphim [82]

Answer:

15,000 units

Explanation:

The computation of the  break even point in units after considering the desired profit is shown below:

= (Fixed cost + desired operating income) ÷ (Contribution margin per unit)

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $250 - $130

= $120

And the other values of items will remain the same now placing these values in the formula above.

So the units would be

= ($1,500,000 + $300,000) ÷ ($120)

= ($1,800,000) ÷ ($120)

= 15,000 units

7 0
4 years ago
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