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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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You should indicate that you are available for an interview in which part of a cover letter?
nlexa [21]

Answer: NOT the second paragraph

Explanation: ed 2021

7 0
3 years ago
Read 2 more answers
Cardinal Health bonds have an annual coupon rate of 3.4 percent and a par value of $1,000 and will mature in 7 years. If you req
Alex787 [66]
  • The answer is "$716.56", and the further calculation can be defined as follows:
  • Health care business, Cardinal Health Leading provider healthcare, and biopharmaceutical products and services that help pharmacists.
  • The healthcare providers impact on customer care whilst reducing costs, improving productivity, or increasing productivity.

Annual coupon to be paid\bold{= \$1000 \times 3.4\%= \$1000 \times \frac{3.4}{100}  = \$34}

years = 7

Calculating the bond price:

= \$1000 \times PVF(5\%, 7\ years) +\$34 \times PVAF(5\%, 7\ years) \\\\= \$1000 \times 0.71068 +\$34 \times 0.17282\\\\= \$710.68 + \$5.87588\\\\= \$716.55588\\\\= \$716.56\\\\

So, the final answer is "$716.56".

Learn more:

brainly.com/question/15570099

5 0
3 years ago
Johns Company manufactures products R, S, and T from a joint process. The following information is available: Product R S T Tota
Kryger [21]

Answer:

C) $ 80,000 $ 70,000

Explanation:

R = ($48,000/$120,000) x $200,000

=0.4×$200,000

= $80,000

S = $200,000-$50,000-$80,000

= $70,000

Therefore the sales value at split-off for products R is $80,000 and S $70,000

6 0
3 years ago
Company J must choose between two alternate business expenditures. Expenditure 1 would require a $80,000 cash outlay and Expendi
Tanya [424]

Answer:

A. 25%

B. 50%

C. 48000 after tax cash flow

Explanation:

a. lets assume marginal tax rate is X%

After tax cash flow of 80000 should equal to 60000$

$80000 - [$80000*X%] = 60000$

80000*X% = 80000-60000

80000*X% =20000

X = 20000/80000

= 25%

b.

$80000 - [$80000*50%*x%] = 60000$

40000*x%=20000

x%=50%

c.

$80000- [$80000*x] = 60000 - [60000*50%*x]

80000-60000 = [80000*x] - [30000*x]

20000 = 50000x

x=40%

check

80000-40% =48000 after tax cash flow

60000*50%

=60000- [60000*50%*40%]

=48000 after tax cash flow

6 0
3 years ago
Bonita Industries has estimated that total depreciation expense for the year ending December 31, 2018 will amount to $583000, an
Mice21 [21]

Answer:

<u><em>Total expenses 936,500</em></u>

depreciation 291,500

wages expense 645,000

Explanation:

Assuming the depreciation are calculate base on straight line or that their output is lineal through the year:

It will be half of the depreciation for the year.

583,000 / 2 =  291,500 depreciation expense for six-month

For the year-end bonused It wll be the same ideal, we assume are earned equally during the year. So at half year half of the bonuses should be earned:

wages expense 1,290,000/2 = 645,000

<u>Total expenses 936,500</u>

7 0
3 years ago
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