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Katena32 [7]
3 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]3 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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Jenna began the year with a tax basis of $45,000 in her partnership interest. Her share of partnership debt consists of $6,000 o
agasfer [191]

Answer:

a) Jenna's tax basis = $45,000 + ($13,000 - $10,000) = $48,000

loss allocation = $65,000

loss limited by her tax basis = $65,000 - $48,000 = $17,000

b)  Jenna's at risk loss = $48,000 - $13,000 = $35,000

c) Jenna's loss limited by passive activity = $35,000 - $4,000 = $31,000

4 0
3 years ago
Mark brainliest:/
galina1969 [7]

Answer:

B, reduced supply of labor, higher wages

Explanation:

Government laws have a minimum wage that has to be earned by the company to employ a person.

5 0
3 years ago
Read 2 more answers
Suppose that the total utility from consuming one unit of good X is 54 utils, the total utility of two units of good X is 74 uti
mars1129 [50]

Answer: a. 10 utils

Explanation: The marginal utility from consumption of the third unit of goods is gotten by taking the difference between the total utility derived from three units of goods and the total utility derived from two units of goods.

Total utility from three units = 84 utils

Total utility from two units = 74 utils

84 - 74 = 10 utils which is the marginal utility of the third unit.

4 0
3 years ago
Harrison Corp. wants to raise its level of service to enhance customer experience. The board of directors sent out an email cont
romanna [79]

Answer:

Downward communication

Explanation:

Downward communication in a formal structure is the flow of information in terms of orders, appreciation, encouragement from higher authority to subordinates across the organization.

Upward communication in the form of feedback and problems flow from lower level employees to upper level. Here, the board of directors are top level employees who have passed the message to the employees to raise the level of service. This is a form of downward communication.

4 0
3 years ago
A deep sea diving bell is being lowered at a constant rate. After 12 ​minutes, the bell is at a depth of 400 ft. After 50 minute
ella [17]

Answer: After 50 minutes the bell is at a depth of 2000 ft so we can find the average rate by

2000/50 =40 ft per minute.

We ignore the 400 ft in 12 minutes because that is included when we take out the average at 50 minutes and adding it in would be an error of doubly entry.

Explanation:

6 0
3 years ago
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