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3 years ago

To determine the quantity of any activity that will maximize total net benefit, economists employ the ________ rule.

1 answer:

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To determine the quantity of any activity that will maximize total net benefit, economists employ the "principle of marginal analysis"

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Bethesda Biosys issues an IPO on a best-efforts basis. The company's investment bank requires a spread of 18 percent of the sell

Andrej [43]

Answer:

Bethesda Biosys

Issue of an IPO:

Net proceeds for the issuer is $82 million, if all the 4 million shares are bought by investors.

Explanation:

a) Calculations:

The spread is $4.5 (18% of $25) per share, since average selling price is $25.

Therefore, the net proceed per share is $20.50 ($25 - 4.50).

And the Total Net Proceeds = $82 million ($20.50 * 4 million), assuming that all four million shares were bought by the public.

Note that the question did not provide the necessary information to make the final decision.

b) During the issue of securities, especially an IPO, underwriters, such as investment banks, pay an issuing company for the securities and then sell the securities to the public. There is always a difference per share price that they are willing to pay the issuer and what they will collect from the investing public. That difference is called the underwriting spread or simply the spread.

c) Best-Efforts Basis: According to investopedia.com, underwriting on best-effort basis is "an agreement between an underwriter and an issuer in which the underwriter agrees to place as much of an offering with investors as possible, but is not responsible for any portion of the offering it fails to sell."

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3 years ago

Globalization has led to: Group of answer choices lower operational efficiency, as firms must transport raw materials and finish

jekas [21]

Answer: Option D

Explanation: Globalization refers to the free interaction among different countries of the world. Globalization results in free transfer of resources and technology around the world.

Due to globalization a consumer of India can enjoy a product or service provided by a supplier of america. Thus, the competition increases to its best because off globalization. Therefore, the consumers are willing to purchase the best product in the market. resulting in increase in quality and decrease in cost.

Hence from the above we can conclude that the correct option is D.

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3 years ago

MC Qu. 122 Walter Enterprises expects... Walter Enterprises expects its September sales to be 20% higher than its August sales o

padilas [110]

Answer:

Ending cash balance $67,900

Explanation:

The computation of the ending cash balance is given below:

Schedule of expected cash collection for September

From august sales (70% of 225,000) 157,500

From sept. sales (30% of 270,000) 81,000

Total cash collection$238,500

Now

Schedule of expected cash payment

For august purchase (80% of 175,000) 140,000

Foor september purchase (20% of 195,000) 39,000

Total cash payment $179,000

Now

Beginning cash balance 8,400

Budgeted cash collection 238,500

Total available cash 246,900

Budgeted cash payment -179,000

Ending cash balance $67,900

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3 years ago

Brooks Company received proceeds of $188,500 on 10-year, 8% bonds issued on January 1, 2016. The bonds had a face value of $200,

Semmy [17]

Brooks uses the straight-line method of amortization. Brooks Company redeemed the bonds on January 1, 2018

The amount of gain reported by Brooks its 2018 income statement relative to this transaction is $190,800

Explanation:

We know that the formula for carrying value is

Carrying value =Face value - Unamortized discount

Bonds have a face value of $200,000

Brooks Company received proceeds of $188,500

200,000 - 188,500 = 11,500 ( unamortized discount )

11,500 / 20 = 575 semiannual discount amortization

575 x 4 = 2,300 discount amortized after 4 interest payment periods.

11,500 - 2,300 = 9,200 unamortized discount

200,000 - 9,200 = $190,800 (Carrying Value)

The amount of gain reported by Brooks its 2018 income statement relative to this transaction is $190,800

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3 years ago

Marigold Corp. uses the periodic inventory system. For the current month, the beginning inventory consisted of 477 units that co

Blizzard [7]

Answer:

COGS= $81,770

Explanation:

Giving the following information:

Beginning inventory= 477 units that cost $65 each.

Purchases:

715 units at $68 each

364 units at $70 each.

Units sold= 1,197

To calculate the cost of goods sold under the LIFO (last-in, first-out) method, we need to use the cost of the lasts units incorporated into inventory:

COGS= 364*70 + 715*68 + 118*65

COGS= $81,770

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3 years ago