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Allisa [31]
3 years ago
11

A sewage treatment revenue bond issue is being underwritten on a negotiated basis. The offering consists of $50,000,000 par valu

e of term bonds. The underwriter has agreed to a spread of $45.00 for each $5,000 bond. The manager has set the additional takedown at $20.00 per bond and the selling concession at $22.00 per bond. If a selling group member sells a $5,000 par value bond directly to the public, the selling group member earns:____________
Business
1 answer:
Slav-nsk [51]3 years ago
5 0

Answer:

The multiple choices are :

a.$8

b.$20

c.$22

d.$45

The correct option is C.$22

Explanation:

The earnings accruing to the selling group is the selling concession of $22 per $5,000 per bond.

Option A is obviously wrong as there is nothing in the questions that suggest earnings of $8 per bond for the selling group.

Option D is wrong as well because $45 per bond is the spread  which is the extra yield to bondholders when compared to investment in government securities

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Pastoria Enterprises has scheduled raw material purchases of $100,000 in January, $130,000 in February, and $150,000 in March. T
IRINA_888 [86]

Answer:

B

Explanation:

The question asks to calculate how much will be disbursed by the company in February.

Firstly , we know that the company disburses 75% in the month of purchase and 25% during the month after purchase.

Now, 75% of $130,000 would be disbursed as February’s own payment:

Mathematically 75/100 * 130,000 = 97,500

Also, we should not forget that the company disburses 25% of previous month during the current. That is 25/100 * 100,000 = 25,000

Total amount disbursed is thus 25,000 + 97,500 = $122,500

6 0
3 years ago
How might a person’s place in the life cycle influence investment decisions?
vfiekz [6]

Answer:

Student responses will vary, but should include: A young investor has years of earning power and can take greater risks because he/she has time to make-up for losses. An older investor needs more security and current income from their investments because they are using it to retire on or they need it to continually grow so that they can retire.

Explanation:

3 0
3 years ago
If person A and B are well informed and intelligent player, A have available choices :
AfilCa [17]
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5 0
3 years ago
It is claimed that mutual funds have two advantages. The first is that mutual funds allow people with small amounts of money to
romanna [79]

Answer:

The correct answer is d. Economists strongly agree with the first claim, but are skeptical of the second.

Explanation:

A mutual fund is an investment alternative that consists of contributions from natural and legal persons (called participants or contributors), to form equity for their investment in shares, debt instruments or fixed income, or a combination of both ( shares + fixed income). They offer a diversified investment alternative since they invest in numerous instruments at the same time. These instruments vary according to the type of fund and are defined by the investment policy regulated by the Superintendency of Securities and Insurance. They are managed by corporations called General Fund Administrators (AGF) that are chosen by the participants themselves. It is important to choose both the administrator and the type of fund based on what best suits each personal situation.

5 0
3 years ago
Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide alloca
IgorC [24]

Answer:

Option (D) is correct.      

Explanation:

Total Overhead Cost:

= (Overhead × Number of cases) for all products

= (20 × 350) + (25 × 550) + (17 × 650)

= 31,800

Total Machine Hours:

= Machine hours × Number of cases

= (5 × 350) + (3 × 550) + (4 × 650)

= 6,000

Overhead Rate:

= Total Overhead Cost ÷ Total Machine Hours

= 31,800 ÷ 6,000

= 5.30

Total product cost per case for Product GC:

= Direct Material + Direct Labor + Overhead

= 80 + 30 + (Machine hours × Overhead Rate)

= 80 + 30 + (3 × 5.3)

= 80.00 + 30.00 + 15.90

= $125.90

4 0
3 years ago
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