Answer:
The investment club is not a restricted purchaser and may buy the IPO
Explanation:
In the financial market a restricted purchaser is someone that has has direct engagement in a business or who has affiliates that are directly engaged in the business that wants to sell securities.
In this scenario a restricted purchaser will be someone that has direct business engagement in the representative firm. Since this is not so the president of the investment firm is free to purchase the IPO.
An Initial Public Offering is when a companies decides to make its shares available to the public for the first time.
Answer:
Coupon Rate = 8.1%
Explanation:
Given:
Nper = 18 x 2 = 36 semiannual
Rate = 6.6% / 2 = 3.3% semiannual
Future Value = $1,000
Present Value = $1,156.50
Find:
Coupon rate
Computation:
Annual Interest Payment = PMT(Rate,Nper,PV,FV)2
Annual Interest Payment =PMT(3.3%,36,-1156.50,1000)2
Annual Interest Payment = $80.98 = $81 (Approx)
Coupon Rate = [Annual Interest Payment / Face Value]100
Coupon Rate = [81/1000]100
Coupon Rate = 8.1%
Answer:
Explanation:
The expected value is calculated by using the probability of each event. If the chance of dying is 0.60% then the chance living is 99.40%. The expect value formula is:
∑[(xi)*P(xi)] (for all i events).
In this problem we have two events: live or die. If the person dies the family receives $1,000,000 (X1=$1,000,000) and if the person lives the family receives $0 (X2=$0). The probability of receiving $1,000,000 is 60% (P(x1)=0.006) and the probability of receiving $0 is 99.40% (P(x2)=0.994)
Using the formula the expected value of the policy (without the insurance cost):
$1,000,000* (0.006)+ $0*(0,994)= $6,000
If we subtract the insurance value:
$6,000-$5,500= $500
Answer:
correct option is C. of $18 million has occurred.
Explanation:
given data
poration issued = $25 million
new common stock = $25 million
investment = $18 million
repay bank loans = $7 million
solution
As here an an investment is an asset or commodity that is earned with the goal of gaining income or appreciation.
In here in the given statement , the total investment used to buy the equipment.
Bank loan repayment is not an investment
so correct option is C. of $18 million has occurred.