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pychu [463]
3 years ago
6

Wear Ever is expanding and needs $6.8 million to help fund this growth. The company estimates it can sell new shares of stock fo

r $43 a share. It also estimates it will cost an additional $352,000 for filing and legal fees related to the stock issue. The underwriters have agreed to a spread of 7.5 percent. How many shares of stock must be sold for the company to fund its expansion?
Business
1 answer:
kakasveta [241]3 years ago
5 0

Answer: 179,811 shares

Explanation:

Given that,

Price of each share = $43

Amount needed for expansion = $6.8 million

Cost incurred for  filing and legal fees = $352000

Underwriters have agreed to a spread of 7.5 percent

Now,

Net price after the underwriter spread = $43 × ( 1 - 7.5%)

= $39.775

Total capital needed = Fund needed for growth + Legal and filing fees

= $6,800,000 + $352,000

= $7,152,000

Number of shares sold = \frac{7152000}{39.775}

= 179,811 shares

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Answer:

Explanation:

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            To Account payable A/c $22,680

(Being the inventory purchased is recorded)

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(Being the freight cost is paid)

On August 10

Account payable A/c $2,430       (9 handheld games × $270)

       To Merchandise inventory A/c  $2,430

(Being the goods are returned)

On August 14

Account payable A/c Dr $20,250    ($22,680 - $2,430)

        To Merchandise Inventory A/c $405      ($20,250 × 2%)

        To Cash A/c $19,845

(Being the amount due is paid)

On August 23

Accounts Receivable A/c Dr $18,560     (64 handheld games × $290)

        To Sales revenue A/c $18,560

(Being the sales on credit basis is recorded)

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7 0
3 years ago
When you construct the replicating portfolio for the option in the previous question how many dollars do you need to invest in t
netineya [11]

Answer: The same amount of dollars

When it comes to the financial level, a replicating portfolio as the name implies, is a repetition of specific flows of a given asset, so it must be constituted with the same resources. In this case, the same amount of cash would be needed to create the replica.

4 0
2 years ago
When maria comes home from work, she finds that her yard has been mowed and trimmed. an hour later, a man comes to her door to c
Andreyy89

Answer:

d. maria would not have to pay anything.

Explanation:

In this scenario Maria did not form a contract with the man to cut her lawn and had not even met him before. So there is no contract formed voluntarily, neither is it an implied contract.

Maria was enriched in this process because she will benefit from the cutting of the lawn. She was however not unjustly enriched because the man was not unduly influenced to carry out the task.

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Answer:

A. True

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If a customer buys 1 xyz aug 50 put at 1 and sells 1 xyz aug 65 put at 10 when xyz is at 58, the maximum potential gain is?
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If a client buys 1 XYZ Aug 50 put at 1, and deals 1 XYZ Aug 65 put at 10 when XYZ is at 58, the greatest potential gain is 900.

<h3>The Formula and Calculation of Time Value</h3>

The instructions below show that time value is derived by removing an option's intrinsic value from the option bonus. In other words, the time worth is what's left of the premium after calculating the profitability between the strike expense and the stock's price in the market.

The maximum gain on any distinction spread is the net credit. In this issue, $1,000 was received and $100 paid out, so the net recognition is $900.

To learn more about potential gain visit the link

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