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Katena32 [7]
4 years ago
15

The Bert Corp. and Ernie, Inc., have both announced IPOs. You place anorder for 1,100 shares of each IPO. One of the IPOs is und

erpriced by $17.75 and the other is overpriced by $6.25. You will receive all of the shares you ordered of the overpriced IPO, but only one-half of the shares you ordered of the underpriced IPO. What profit do you expect?
Business
1 answer:
Sati [7]4 years ago
5 0

Answer:

The profit expected from the two IPOs is $2887.5

Explanation:

For the overpriced IPO,1100 shares would be received and since the share was overpriced by $6.25, an instant loss of $6,875 ($6.25*1100) is recorded.

For the under-priced IPO ,550 shares (1100 shares divided by 2) would be received and the immediate gain recorded is $9,762.5(550 *$17.75)

Overall the two portfolios, when taken together,give an immediate gain of $2,887.50(gain of $9,762.50 less loss of $6,875 )

This is power of portfolio diversification, that managing potential investment losses by spreading one's investment.

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Assume an organization's current service level on order fill is as follows:
frosja888 [35]

Answer:

Answer for the question:

Assume an organization's current service level on order fill is as follows:

Current order fill 80%

Number of orders per year 5,000

Percent of unfilled orders back-ordered 70%

Percent of unfilled orders cancelled 30%

Back order costs per order $150

Lost pretax profit per cancelled order $12,500

a) What is the lost cash flow to the seller at this 80 percent service level?

b) What would be the resulting increase in cash flow if the seller improved order fill to 92 percent

c) If the seller invested $2 million to produce this increased service level, would the investment be justified financially?

d) What is the role of activity-based costing in customer relationship management? In customer segmentation?

is given in the attachment.

Explanation:

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7 0
3 years ago
Shelly's company produces computers, phones, and tablets. About six months ago, Shelly began to keep track of number of hours wo
charle [14.2K]

Answer: B.) productivity at the work site has increased.

Explanation: The considerable increase in output at the work site while still maintaining the same number of workers and hours worked over the last six months shows that the productivity at the work site has increased. Productivity which is usually compares unit output to the rate of inout per unit. The effectiveness of the input or production effort is used to measure the degree of productivity. Therefore, when the output derived by maintiaing the same unit of input increases, then productivity has increased. If it decreases, then productivity has decreased.

8 0
3 years ago
What is economic growth
goblinko [34]
Hey there!

(economic) growth is when the country or the city is more wealthy in money. This would mean that there are not lacking in making this city or ect, look good, they have food to eat, water, and this is what make a economic city place look good. It is also when places have money to use on other thing's as a skating rink or things of that case.
3 0
3 years ago
Read 2 more answers
This appraisal approach estimates the value of the present worth of the future rights to the income the property generates by co
Allisa [31]

Answer:

The income approach.

Explanation:

This appraisal approach evaluates the importance of the present value of the future rights to the income the estate generates by converting the net income of the estate into a value. This is known as <u>the income approach</u> which is also recognized as capitalization. It is a type of real estate appraisal method and it is also used to appraise investment or income-producing properties.

6 0
3 years ago
Abbey Co. sold merchandise to Gomez Co. on account, $25,700, terms 2/15, net 45. The cost of the goods sold was $14,731. Abbey C
Ksivusya [100]

Answer:

Abbey Co.

Amount of gross profit earned by Abbey Co:

Net Sales =            $22,600

Cost of goods sold  13,273

Gross profit            $8,327

Explanation:

a) Data and Calculations:

Sales = $25,700

Sales returns = 3,100

Net Sales = $22,600

Cost of goods sold =               $14,731

Inventory returned                     1,458

Adjusted cost of goods sold $13,273

The gross profit is a function of sales revenue and cost of good sold.  It is the first profit that is determined in the income statement.  It tells the efforts of management to turn sales revenue into some profits, which will be used to offset the period's expenses before the net income could be arrived at.

8 0
3 years ago
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