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Dennis_Churaev [7]
3 years ago
8

Match Group went public in November 2015. The company sold 33,333,333 shares at $12 per share. The underwriting spread was $0.66

a share, and the direct expenses were $0.21 a share. a. What was the percentage underwriting spread?
Business
1 answer:
kipiarov [429]3 years ago
3 0

Answer:

5.5%

Explanation:

The underwriting spread = $0.66 per share

the percent underwriting spread = ($0.66 / $12) x 100 = 5.5%

The underwriting express is the fee that the underwriter of the stock (usually an investment bank) will charge the company for carrying out the transaction, either an IPO or simply issuing more stocks.

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A financial institution has entered into an interest rate swap with company X. Under the terms of the swap, it receives 10% per
sergij07 [2.7K]

Answer:

The loss of the financial institution is $413,000

Explanation:

Let's say that after 3 years the financial institution will receive:

0.5 * 10% of $10million

= 0.5 * 0.1 * 10000000

= $500,000

Then, they will pay 0.5 * 9% of $10M

= 0.5 * 0.09 * 10000000

= $450,000

Therefore, their immediate loss would be $500000 - $450000

= $50000.

Let's assume that forward rates are realized to value the rest of the swap.

The forward rates = 8% per annum.

Therefore, the remaining cash flows are assumed that floating payment is

0.5*0.08*10000000 =

$400,000

Received net payment would be:

500,000-400,000= $100,000. The total cost of default is therefore the cost of foregoing the following cash flows:

Year 3=$50,000

Year 3.5=$100,000

Year 4 = $100,000

Year 4.5= $100,000

Year 5 = $100,000

Discounting these cash flows to year 3 at 4% per six months, the cost of default would be $413,000

4 0
3 years ago
Estimated expenses of liquidation were $10,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of 2:4:4. Before l
stealth61 [152]

<u>Solution and Explanation:</u>

The total amount of cash available for safe payments would be $25,000 (90,000 - 60,000 - 5,000). This amount will be distributed between Henry and Jacobs in the ratio of 6:4 meaning that $15,000 (25,000*60%) will be given to Henry and $10,000 (25,000*40%) will be given to Jacobs.

The value of $120,000 will be distributed to the partners as follows:

                                  Henry                Issac             Jacobs

Equity                           80,000                 110,000           140,000

Less Loss on Assets  36,000                  72,000              72,000

Liquidation Expenses  1,000                      2,000          2,000

Balances                   43,000                   36,000          66,000

Less Distribution

of Safe Payments to Partners 15,000                  0             10,000

Net Balances                    $28,000  $36,000  $56,000

4 0
3 years ago
The federal funds rate A. equals the discount rate. B. only matters to banks and has very little impact on individual consumers.
bixtya [17]

Answer:

D. is the rate that banks charge each other for​ short-term loans of excess reserves.

Explanation:

The federal reserves require banks to maintain a certain amount in their vaults to cater for possible withdraws.  At the close of business every day, banks have to confirm they have the required amount. Should a bank fail to meet the requirement, it can borrow from other banks that have a surplus. The interest rate that banks charge each other for these transactions is the fed fund rate.

The Fed set the fund rate. It may increase or decrease it depending on the prevailing market condition. The banks use the fund rate set to determine the interest rates to be charged on loans and mortgages. A high fund rate means high-interest rates.

8 0
3 years ago
Clarence used to work as a doctor in a federal government hospital. After retiring, he started a private clinic to continue prac
Masteriza [31]

Answer:

self-actualization

Explanation:

The answer is deeply related to "Maslows Hierarchy of Needs."

Abraham Harold Maslow is a popular American psychologist who introduced a motivational theory consisting of five stages in relation to the<em> deficiency needs and growth needs of humans.</em>

Everything starts with the deficiency needs.<u> It is very important to satisfy this need in order to engage into the growth needs.</u> For example, a boy is very thirsty. If that need will not be met, the boy will continuously crave for water. On the contrary, if this is met immediately, the boy will aim to grow as a person. This is what you call the growth needs.

This needs are presented in a pyramid.

From top to bottom:

1. Self-actualization

2. Self-esteem Needs

3. Love or Belongingness Needs

4. Safety Needs

5. Physiological Needs

It is ideal for a person to progress from Physiological Needs to Self-actualization, but it doesn't mean every stage is always met. Sometimes, fluctuations occur depending on the situation.

Regarding Clarence's case above. It was stated that he already worked as a doctor in a federal government. This means that he has already satisfied his self-esteem needs and the other needs below. Becoming a doctor is a prestige and a feeling of accomplishment. This can be found on the <u>Self-Esteem Needs </u>stage. In addition to this, <em>Clarence already reached his full potential and is seeking for personal growth and independence. </em>This is backed by the statement above that he opened a private clinic to continue his practice. This means he is already on the self-actualization stage of the hierarchy. 

6 0
3 years ago
Which of the following fiscal policy action would cause the economy to contract?
maksim [4K]
<span>This is a tricky question, because most of the answers provided are correct. For instance, by raising taxes, the government drops down the demand rates, as well as by decreasing the money supply (in that case, it also prevents economy from falling into an inflating situation). As for balancing the budget, this economical move entails decreasing the public expenditure and, therefore, contracting the demanding economical figures too. </span>
4 0
2 years ago
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