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crimeas [40]
3 years ago
8

The Boat Works decided to go public by offering a total of 135,000 shares of common stock to the public. The company hired an un

derwriter who arranged a firm commitment underwriting and an initial selling price of $24 a share with a spread of 8.3 percent. As it turned out, the underwriters only sold 122,400 shares to the public. What is the amount paid to the issuer
Business
1 answer:
Alex787 [66]3 years ago
7 0

Answer:

The amount paid to the issuer is $2,971,080.

Explanation:

The total number of shares is 135,000.

Though only 122,400 shares are sold to the public.

The initial selling price is $24.

The spread percentage is given at 8.3%.

The amount paid to the issuer will be

=Total number of shares*Initial selling price (1-spread)

=135,000*24*(1-0.083)

=135,000*24*0.917

=2,971,080

So, the amount paid to the issuer is $2,971,080.

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Nova Electrics anticipates cash flow from operating activities of $12 million in 20X1. It will need to spend $9.5 million on cap
Ulleksa [173]

Answer:

$1.78 million

Explanation:

Firm’s projected free cash flow for the year 20X1:

= cash flow from operating activities - capital investment - Common stock dividend - preferred stock dividend

= $12 million - $9.5 million - $0.40 million - $0.32 million

= $1.78 million

Therefore, the firm’s projected free cash flow for the year 20X1 is $1.78 million.

6 0
3 years ago
A price ceiling set below the equilibrium price in a perfectly competitive market A. always reduces producer surplus and increas
anygoal [31]

Answer:

A

Explanation:

Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay – price of the good

Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product

Producer surplus = price – least price the seller is willing to accept

Because price is below equilibrium price, consumer surplus would increase and producer surplus would reduce

7 0
2 years ago
When a certain competitive firm produces and sells 100 units of output, marginal revenue is $80. When the same firm produces and
Assoli18 [71]

Answer:

d. This cannot be determined from the given information

Explanation:

To find the average revenue of 200 units it is necessary to know the total units. However, the function of the marginal revenue is not given. It is impossible to infer the marginal revenue (price) of other units (of output) only from knowing the marginal revenue of the 100th unit.

6 0
3 years ago
Which of the following is NOT a benefit of putting money in a savings account?
mote1985 [20]

I 'm not sure but the answer might be A.

4 0
3 years ago
What is another way to express class rank?
Vadim26 [7]

Answer:

The answer is C.

Explanation:

Class rank is a measure of how a student's performance compares to other students in his or her class. It is commonly also expressed as a percentile.

8 0
3 years ago
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