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Alex_Xolod [135]
3 years ago
13

In a "Dutch auction" for new stock, individual investors place bids for shares directly. Each potential bidder indicates the pri

ce he or she is willing to pay and how many shares he or she will purchase at that price. The highest price that permits the company to sell all the shares it wants to sell is determined, and this is the "market clearing price." All bidders who specified this price or higher are allowed to purchase their shares at the market clearing price.
a. Trueb. False
Business
1 answer:
aivan3 [116]3 years ago
6 0

Answer:

a

Explanation:

A Dutch auction is a method for pricing shares (often in an initial public offering) whereby the price of the shares offered is lowered until there are enough bids to sell all shares. All the shares are then sold at that price. The goal of a Dutch auction is the find the optimal price at which to sell a security.  

For example, let's assume Company XYZ wants to sell 10 million shares using a Dutch auction. To participate in a Dutch auction, an investor typically opens an account with Company XYZ's underwriter (usually an investment bank), obtains a prospectus, and obtains an access code or bidder identification code (Dutch auctions often occur online).  

During bidding, investors indicate how many shares they're willing to buy and the price they're willing to pay. The underwriter, who acts as the auctioneer, usually starts the auction by offering a prohibitively high price for the security (say, $40 per share in this case). It then lowers the price gradually to say, $36 per share, where two bids come in for 500,000 shares. The underwriter then lowers the price again, this time to $35, and attracts 4,000,000 shares worth of bids. After lowering the price to $34, the underwriter gets another 5,000,000 shares worth of bids; then the underwriter lowers the price to $33 and gets another 3,000,000 in bids before the auction ends.

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3 years ago
The average propensity to consume is the: ratio of consumption to income. amount consumed out of an additional dollar of income.
Arlecino [84]

Answer:

The correct answer is: ratio of consumption to income.

Explanation:

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4 0
3 years ago
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lidiya [134]

Answer:

B. Greater efficiency

Explanation:

Efficiency, in this case, will refer to achieving the desired results with minimal or no wastage. A distribution manager has the responsibility to ensure goods get to their destination as scheduled. The manager's efficiency will be gauged by the speed, accuracy, and safety of deliveries.

Other than cost savings, the distribution manager has to aim at achieving greater efficiency. Customer service and pricing are functions of other managers.

8 0
3 years ago
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On October 1, 2018, Iona Frisbee Co. issued stock options for 300,000 shares to a division manager. The options have an estimate
Gemiola [76]

Answer:

$300,000

Explanation:

Option expenses to be recognized in the first year ,

= \frac{N\ *\ FV}{Total\ vesting\ period}    ×  period elapsed   - Expenses already recognized

wherein N = No of options expected to be vested

              FV = Fair value on the grant date

              Vesting period = The time period after which the options can be exercised

Thus, after the first year, employee compensation expenses to be recognized

= \frac{300000 *\ 3}{3\ years} × 1 year = $300,000 - 0 = $300,000

Similarly, for the second year, option expenses to be recognized would be,

= \frac{300000 *\ 3}{3\ years}  × 2 years - $300,000 =  $300,000

Similarly for the third year

= \frac{300000 *\ 3}{3\ years} × 3 years - ($300,000+ 300,000)  = $300,000

The journal entry to be passed each year would be

Stock Option Compensation Expense A/C   Dr. $300,000

                           To Stock Options A/C                        $300000  

(Being stock option expenses for the year recognized)

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2 years ago
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