An investment banker agrees to underwrite an issue of 10 million shares of stock for TWResearch, Inc. on a firm commitment basis. The investment banker pays $10.50 per share to TWResearch, Inc. for the 10 million shares of stock. It then sells those shares to the public for $11.20 per share.
Answer:
In a firm commitment offering, the investment banker bears the financial risk and buys the securities from TWResearch to sell to the public at its own terms.
In a best efforts offering, TWResearch, Inc. bears the financial risk and only makes its best efforts to sell the securities without buying them from TWResearch.
Explanation:
With a firm commitment offering, the investment banker enters into an agreement to purchase all the securities from TWResearch at an agreed price, and then, commits itself to selling the securities to the public at its own chosen price. As it pockets the ensuing gain or loss, the investment banker bears all the financial risk. With a best efforts offering, the investment banker does not assume inventory risk, but makes its best efforts in selling the securities. TWResearch bears the residual financial risk since the underwriter forwards to TWResearch all the proceeds from the issue, after deducting its commission.
Answer:
Answer is $6,079,058.25
Explanation:
This is a simple present value problem.
Present value of annuity shows the worth of annual payments which is present.
As per the given statement, grand prize of lottery is $10 million. This is payable over 20 years at $500,000 per year. The interest rate is 6%.
To find the real worth of the grand prize, each $5 million payment must be "brought back" to their current value at a 6% per year rate.
N = 20; PMT = 500,000; FV = 0 ; I = 6% ; Payments in BEGIN mode.
PV= Cash flow/ (1+rate of return) to the power n
PV will be addedc exponential power 20 times giving answer as $6,079,058.25
Hence, PV = $6,079,058.25
Explanation:
I would leave out the part about the people you currently work with and just state that you are a team player and the you love to be around people who are outgoing and you are very sociable and a quick learner
The general journal entry made by First Rentals on purchase of office supplies on credit will include a Credit to Accounts Payable.
<h3>How are office supplies on credit recorded?</h3>
Office supplies on credit means office supplies bought on credit by the firm.
In conclusion, the general journal entry made by First Rentals on purchase of office supplies on credit will include a Credit to Accounts Payable.
Read more about Accounts Payable
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Answer:
B) The money they saved in the past is worth less in the future
Explanation:
