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Effectus [21]
3 years ago
7

An investment banker agrees to a firm commitment offering of two million shares of Ace stock. The offer price is set at $55 and

the spread is 50 cents per share. If the stock is actually sold to the public at $53.80, however, what is the investment banker's gain or loss?
Business
1 answer:
balandron [24]3 years ago
8 0

Answer:

loss of $ 1,400,000.00

Explanation:

Amount of share : two million:

offer price per share: $55

selling price per share: $53.80

Loss per share: $1.20

Total loss= $1.2X2,000,000= ($2,400.000.00)

Earning from spread: 0.5x2,000,000.00 =$1,000.000.00

Net earning: (2,400,000.00)+$1,000,000.00=($ 1,400,000.00)

loss of $ 1,400,000.00

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Some people include a letter of last instruction in their estate planning. What is likely TRUE about this letter?
iVinArrow [24]

Answer:

C

Explanation:

A Letter of Last Instruction (LOLI) serves to give family important information such as where the person wants to be buried, instructions for any pets, or location of important legal documents.  

Side note: this is not a will, and should not be used as a substitution for one. A will is a legal document, a LOLI is not.

Hope this helps! Let me know if you have any further questions about my response.

3 0
3 years ago
In 2019, Meghann Carlson, a single taxpayer, has QBI of $129,100 and modified taxable income of $103,280 (this is also her taxab
victus00 [196]

Meghann carlson QBI deduction is = $548,623

Solution:

The qualifying business income exclusion (QBI) referred to as Section 199A requires operators to receive up to 20 percent of their eligible business earnings for a tax deduction. It was implemented in the context of the Tax Cuts and Jobs Act 2017.

Since gross deduction for QBI deduction is set at 20% of lower of QBI ($129,100 ) or Taxable income($103,280)

So the lower is taxable income ,

i.e $103,280 × 20% ( 103,280 × 20÷ 100)

  = 20,656 ( 206.56 )

= $548,623

3 0
3 years ago
MC Qu. 84 Two investment centers... Two investment centers at Marshman Corporation have the following current-year income and as
dusya [7]

Answer:

The correct answer is 11.28%

Explanation:

Solution

Recall that:

                                          Investment center A    Investment center B

Investment center income    $ 530,000                $ 640,000

Investment center average

invested assets                     $ 4,700,000                $ 3,100,000

Now,

We calculate for return on investment (ROI) for Investment Center A

The ROI A=Investment center income/Average invested assets  which is

= (530000/4,700,000)

=11.28%

8 0
3 years ago
In a new margin account, a customer buys 300 shares of ABC at $40 per share, 100 shares of the Ajax Mutual Fund at $24, and 10 P
never [62]

Answer: 12400

Explanation:

It should be noted that 50% of the stick value will be paid by the customer and also 100% of the mutual fund shares value will also be paid because they are nonmarginable securities.

Therefore, 50% of $12,000 = $6,000

Total payment required will now be:

= $6,000 + $2,400 + $4,000

= $12,400.

3 0
3 years ago
If a firm increases its dividend payout rate the: firm will have less cash available for new investment. Unselected firm’s sto
KengaRu [80]

Answer:

1. If a firm increases its dividend payout rate the: firm will have less cash available for new investment. True

2. Stock price will likely fall by the same percentage. False

3. Retention ratio will rise at the same rate. False

Explanation:

1. If a firm increases its dividend payout rate the: firm will have less cash available for new investment. This assertion is true because the company would be paying out a larger portion of earnings as dividends, hence the balance portion for new investment will be lower as a result.

2. Stock price will likely fall by the same percentage. This assertion is most unlikely because normally, if a particular stock is paying higher dividends investors will have high expectation and be willing to pay a higher price to buy a stock that pays high dividends

3. Retention ratio will rise at the same rate. This conclusion is also incorrect because pay out ratio and retention ratio have an inverse relationship. If more dividend is paid out, then less money is retained.

3 0
3 years ago
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