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3 years ago

Which one of the following is a primary market transaction?

Business

2 answers:

Natalka [10]3 years ago

5 0

Answer:

The correct answer is letter "B": sale of a new share of stock to an individual investor.

Explanation:

Corporations and governments fund their activities by selling stocks or bonds that are bought directly by individual investors from the issuing company or government entity. This is considered the primary market which gives investors their first opportunity to buy new securities.

Charra [1.4K]3 years ago

3 0

Answer:

b. sale of a new share of stock to an individual investor

Explanation:

The primary market is where new stocks are created. it is the platform for investors to purchase stocks of an entity that goes public for the first time.

Hence the initial public offer otherwise known as IPO is a good example of a primary market transaction.

As such sale of a new share of stock to an individual investor is a primary market transaction

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Fabrick Company's quality cost report is to be based on the following data: Lost sales due to poor quality $ 78,000 Quality data

Makovka662 [10]

Answer:

$102,000

Explanation:

Calculation to determine What would be the total appraisal cost appearing on the quality cost report

Using this formula

Total appraisal cost=Test and inspection of in-process goods + Final product testing and inspection

Let plug in the formula

Total appraisal cost=$ 24,000+$78,000

Total appraisal cost=$102,000

Therefore What would be the total appraisal cost appearing on the quality cost report is $102,000

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3 years ago

RealTurf is considering purchasing an automatic sprinkler system for its sod farm by borrowing the entire $50,000 purchase price

Jet001 [13]

Answer:

savings per year = $20,500 - $10,500 = $10,000

the loan and interest are not included in the calculation

initial outlay = $50,000

cash flows 1-8 = $10,000

cash flow 9 = $15,000

discount rate = 15%

using a financial calculator, the NPV = -$862.85, and the IRR = 14.53%

8 0

3 years ago

The reason fast food restaurants often are found in close proximity to each other is a. they enjoy competition b. location clust

olganol [36]

Answer:

b. location clustering near high traffic flows

Explanation:

Proximity to customers is a major consideration when deciding on a business location. A business situated in areas with many potential customers has a high probability of succeeding. Restaurants are usually strategically situated in places with heavy customer flow.

Restaurants may be established near offices, in market places, near public transport terminus, or other location convenient to customers. With time, customers tend to associate that particular building, area, or street with restaurants. As the area becomes synonymous with restaurants, more customers will visit it, leading to more restaurants to open in that locality.

3 0

3 years ago

Explain the four basic elements of all economic systems.

Alekssandra [29.7K]

Answer: They are personal consumption, business investment, government spending, and net exports.

Explanation:

6 0

3 years ago

Consider the following cash flows for two mutually exclusive capital investment projects. The required rate of return is 7%. Use

konstantin123 [22]

Answer:

$1,900.35

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

The npv can be calculated using a financial calculator:

Cash flow in year 0 = -$32,400

Cash flow in year 1 = $9720

Cash flow in year 2 = $9720

Cash flow in year 3 = $9720

Cash flow in year 4 = $ 4,860

Cash flow in year 5 = $ 4,860

Cash flow in year 6 = $2,430

I =7%

NPV = $1,900.35

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

3 0

4 years ago