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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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3 years ago
Marigold Company uses a periodic inventory system. For April, when the company sold 550 units, the following information is avai
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Explanation:

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April 1 inventory    250         $14            $ 3,500

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Total                    1,000                           $16,580

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b) The first computation is for the total cost of goods available, which is then divided by the total units available for sale.  This gives the weighted-average cost per unit.  This unit cost is then multiplied with the units of ending inventory and sales to obtain the cost of the ending inventory and the cost of goods sold, respectively.

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g When a monopolistically competitive industry is in long-run equilibrium: Multiple Choice price equals marginal cost. firms ear
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price equals minimum average total cost

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8 0
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