Answer:
A. $460,000
B. No
Explanation:
Given:
Number of share = 100,000
underwriter’s explicit fee = $60,000
Offer price = $40
New Price = $44
A.
The Total cost of Equity share =
B.
No. The brokers do not catch the portion of the costs relating to the price quoted.
Answer:
Recommendation to Kimishima about Nintendo is given below:
Explanation:
Nintendo already have a goodwill with [now adults] because they have been playing Nintendo during their childhood, this goodwill can be revived by developing a software [Game] which is famous in Adults [Reality Game]. Also Nintendo can develop a hardware [Gaming Console] which should be compatible with other developers games and possibly cheaper in price to attract customers.
Nintendo already having goodwill, can develop a theme park with its characters and rides, this park can also have shops where Nintendo can sell its games and consoles.
Answer:
B. If the yield to maturity for both bonds remains at 8%, Bond A's price one year from now will be higher than it is today, but Bond B's price one year from now will be lower than it is today
Explanation:
From the information given, that do not contain the price of the bond it is predictable that the Bond A will have higher value than Bond B if the YTM remains at 8% because the Coupon rate for bond A is higher than YTM. instead, the coupon rate for bond B is lower than YTM.
It also can be inferred that Bond B is trading as discount whereas Bond A is trading as Premium.
<span>GI Bill contributed to the growth of professional and white-collar jobs </span><span>by granting US veterans benefits to attend universities. The answer is C. </span>
Answer:
$10,944
Explanation:
Preparation of a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant
PROFORMA INCOME STATEMENT.
Sales $57,120
(1.20* $ 47,600)
Less Costs $42,720
($35,600/$47,600)*$57,120
Taxable Income $14,400
($57,120-$42,720)
Taxes $3,456
(24%*$14,400)
Net Income $10,944
($14,400-$3,456)
Therefore pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant will be $10,944.