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3 years ago

An investment bank agrees to underwrite an issue of 15 million shares of stock for Looney Landscaping Corp.

Business

1 answer:

Naya [18.7K]3 years ago

6 0

Answer:

A) Looney Landscaping will receive $187,500,000 (= $12.50 x 15,000,000 shares)

The bank's profit will be $11,250,000 (= ($13.25 - $12.50) x 15,000,000 shares)

B) Looney Landscaping will receive $166,260,000 (= ($12.50 - $0.275) x 13,600,000 shares)

The bank's profit will be $3,740,000 (= $0.275 x 13,600,000 shares)

If the stocks are sold at $11.95 per share, then Looney Landscaping will receive $158,780,000 (= ($11.95 - $0.275) x 13,600,000 shares)

The bank's profit will be the same, $3,740,000

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If a firm has economies of scale, increasing the quantity produced will lead to: multiple choice 1 higher long run average costs

xeze [42]

It results in lower short run average cost in economies of sale .

<h3>Economies of scale</h3>

Economies of scale refers to the situation where, as the quantity of output goes up, the cost per unit goes down. This is the idea behind “warehouse stores” like Costco or Walmart. In everyday language: a larger factory can produce at a lower average cost than a smaller factory. Figure 2 illustrates the idea of economies of scale, showing the average cost of producing an alarm clock falling as the quantity of output rises. For a small-sized factory like S, with an output level of 1,000, the average cost of production is $12 per alarm clock. For a medium-sized factory like M, with an output level of 2,000, the average cost of production falls to $8 per alarm clock. For a large factory like L, with an output of 5,000, the average cost of production declines still further to $4 per alarm clock.

One prominent example of economies of scale occurs in the chemical industry. Chemical plants have a lot of pipes. The cost of the materials for producing a pipe is related to the circumference of the pipe and its length. However, the volume of chemicals that can flow through a pipe is determined by the cross-section area of the pipe.

Learn more about economies of scale here :

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1 year ago

Exercise 7-14 surland Company expects to have a cash balance of s61.300 on January 1, 2017. These are the relevant monthly budge

DanielleElmas [232]

Answer:

$\left[\begin{array}{ccc}&January&February\\beginning&74040&50560\\receipts&99040&161300\\disbursement&(122520)&(175520)\\interest&0&0\\subtotal&50560&36340\\minimun&35300&35300\\Financing&&\\beginning&0&0\\payment/loan&0&1040\\ending&0&1040\\&&\\ending cash&50560&35300\\\end{array}\right]$

Attached the information for future references as the wording you use is confusing

Explanation:

we add up the collection with the short term proceeds

Then, in expenses we add up each month and subtract the depreciation,

Last step will be checking for financing if below the minimum we will finance until achieve it.

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3 years ago

Suppose the exchange rate between U.S. dollars and Swiss francs is SF 1.41 = $1.00, and the exchange rate between the U.S. dolla

Sphinxa [80]

Answer: 2.0143

Explanation:

From the question, we are informed that the exchange rate between U.S. dollars and Swiss francs is SF 1.41 = $1.00, and the exchange rate between the U.S. dollar and the euro is $1.00 = 0.70 euro.

The cross rate of Swiss francs to euros will be the exchange rate between U.S. dollars and Swiss francs which is SF 1.41 = $1.00 multiplied by the exchange rate between the U.S. dollar and the euro which is $1.00 = 0.70 euro. This will now be:

= (1.41/1.00) × (1.00/0.70)

= 1.41 × 1.4285714286

= 2.0143

The cross rate of Swiss francs to euros is SF 2.0143 = 1 euro

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3 years ago

Who here watches black butler (the anime show) also what is 500 x 44 +56 - 4 -9 x 566

liraira [26]

Answer: 16,958

(I don’t watch anime)

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2 years ago

Read 2 more answers

Variable costs as a percentage of sales for Seaside, Inc. are 75%, current sales are $600,000, and fixed costs are $110,000. How

DiKsa [7]

Answer:

$15,000 increase

Explanation:

Calculation of How much will operating income change if sales increase by $60,000

$15,000 increase

In a situation where the variable costs is the 75% of sales, this means 75% of $60,000 will gives $45,000.

Hence,The change in sales minus variable costs will give us the change in operating income.

Change in operating income =$60,000 - $45,000 = $15,000

Therefore 15,000 increase is the amount that the operating income will change if sales increase by $60,000

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3 years ago