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oee [108]
3 years ago
10

XYZ, Inc., has issued 11 million new shares of stock. An investment bank agrees to underwrite these shares on a best efforts bas

is. The investment bank is able to sell 8.8 million shares for $31 per share, and it charges XYZ $0.695 per share sold.a.How much money does XYZ receive after commission
Business
2 answers:
Ainat [17]3 years ago
8 0

Answer:

$266,684,000  ( or can say $266.7 million)

Explanation:

XYZ receive after commission = number of shares sold * (price per share – commission charged per share)

= 8,800,000 * ($31 - $0.695)  

= $266,684,000

arlik [135]3 years ago
6 0

Answer:

Cash amount received by XYZ Inc after commission is $266,684,000.00  

Explanation:

The total cash received by the investment bank=shares sold*issue price

shares sold is 8.8 million

issue price is $31

total cash received by the investment bank=8,800,000*$31

                                                                        =$272,800,000

Net proceeds received by XYZ=gross proceeds-underwriting charges

underwriting charges=shares sold*charge per share

                                    =8,800,000*$0.695

                                     =$6,116,000

Net proceeds received by XYZ=$272,800,000 -$6,116,000

                                                    =$266,684,000.00  

The cash proceeds received by XYZ Inc after the deduction of investment  bank charges is =$266,684,000.00  

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The total sales of a product, by all competitors in the industry, is:____.a. highest in the introduction stage.b. lowest in the
irina1246 [14]

Answer:

The total sales of a product, by all competitors in the industry, is:____

e. lowest in the market introduction stage.

Explanation:

The product life cycle refers to the time period when a product is first introduced to a market until it exits the market.  There are four main stages in a product life cycle.  They include introduction, growth, maturity, and decline.  It is during the introduction phase that the total sales are lowest.  The low sales are witnessed again during the latter stage of decline.   The highest sales are achieved during the maturity stage.

3 0
3 years ago
Design Interiors has a cost of equity of 14.9 percent and a pretax cost of debt of 8.6 percent. The firm's target weighted avera
Savatey [412]

Answer:

0.73

Explanation:

Given that

WACC = 11%

Tax rate = 34%

Cost of equity = 14.9 %

Cost of debt = 8.6%

Recall that

WACC = (cost of equity × % of equity) + (cost of debt × % of debt) + ( 1 - tax rate)

We are to find

Cost of debt and cost of equity

Let

Cost of debt be x

Cost of equity be (1 - x)

Thus,

0.11 = (1 - x)(0.149) + (x)(0.086)(1 - 0.34)

x = 0.4228

Therefore,

Debt-equity ratio

= Cost of debt/cost of equity

= 0.4228/(1 - 0.4228)

= 0.73

4 0
3 years ago
Read 2 more answers
Harry Corporation's common stock currently sells for $180 per share. Harry just paid a dividend of $10.18 and dividends are expe
Anastasy [175]

Answer:

$190.64

Explanation:

Data provided in the question:

Current selling price of shares = $180 per share

Dividend paid = $10.18

Expected growth rate, g = 6% = 0.06

Required rate of return, r = 12% = 0.12

Now,

The dividend for the following year to the next year, D1 = $10.18 × (1 + g)ⁿ

here, n = 2 ( i.e the duration of next year and the following year )

thus,

D1 = $10.18 × (1 + 0.06)²

or

D1 = $11.438

Therefore,

Price of stock one year from now = \frac{\textup{D1}}{\textup{(r-g)}}

= \frac{\textup{11.438}}{\textup{0.12-0.06}}

= 190.637 ≈ $190.64

7 0
3 years ago
Cost of Merchandise Sold
galben [10]

Answer:

$441,000

Explanation:

The computation of the cost of merchandise sold is shown below:

Cost of merchandise sold = Opening inventory + net purchase - ending inventory

where,

Opening inventory  = $14,500

Net purchase is

= $475,000 - $15,000 - $9,000 + $7,000

= $458,000

And, the ending inventory is $31,500

So, the cost of merchandise sold is

= $14,500 + $458,000 - $31,500

= $441,000

4 0
3 years ago
To provide external shareholders with relevant, reliable, consistent, and comparable financial information, the accounting profe
masha68 [24]

Answer:

<u>Generally accepted accounting principles</u>

Explanation:

Generally accepted accounting principles abbreviated as GAAPs , refer to set of accounting rules and principles to ensure clarity, consistency of reported information and to enhance reliability and comparability of accounting information.

GAAPs were prescribed by Financial Accounting Standard Board (FASB) of the United States. The accountants of public companies in United States are supposed to abide by GAAP principles while compiling accounts and preparing financial statements.

Thus, GAAPs lay emphasis upon presenting financial information which is relevant to the shareholders, which is true and can be relied upon , which is consistent and which can be compared to deduce past trends and for forming opinions and arriving at conclusions.

6 0
3 years ago
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