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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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A common defense known as _______ arises when a consumer knows that a defect exists but still proceeds unreasonably to make use
melomori [17]

Answer:

The correct answer is: Assumption of the risk.

Explanation:

If the risk inherent in a particular action that caused an injury is knowingly and voluntarily assumed, you cannot sue anyone to recover the damages. Suppose, for example, a situation in which he went to a friend's house and was warned about the use of the back door because the floor cover was seriously damaged and would not support a person's weight on it. If you have decided to ignore the warning and use the back door, the doctrine of risk taking will probably prevent the recovery of injuries sustained by a fall on that floor. The court will decide that you "assumed the risk" of such injury.

4 0
3 years ago
A roofing company would like to implement a new method for giving estimates. The owner has narrowed his choice to three differen
galben [10]

The estimators are the blocks in this study

Explanation:

An estimator is a law in statistics for estimating a calculation based on observed figures for a given amount, thereby differentiating the definition, the quantity of value and its consequence. There are estimators for point and time.

To order to measure the time, energy, equipment and function necessary to produce a commodity, constructing a building or provide a service, cost estimators must gather and analyse data. They typically work on a particular company or industry.

It can either be finite-dimensional (parametric and semi-parametric) or infinite-sized (semi-parametric / non-parametric).

3 0
3 years ago
Which account is not classified as a selling expense? sales salaries delivery expense cost of goods sold advertising expense?
lord [1]
The three out of four in the choices is classified as a selling expense such as sales salaries, delivery expense, and advertising expense. This three are under the account of selling expense while the Cost of good sold or for short COGS is also classified as an expense but the cogs we sold needs to be matched <span>with the pertinent sales on the </span>income<span> statement.</span>
8 0
3 years ago
Read 2 more answers
Market size and growth of the total U.S. beer market was estimated to be around $106 billion. The total economic impact of the b
RUDIKE [14]

Answer:false

Explanation:

The current gdp of us is estimated to about $21427.1 billion.

So if beer market is estimated to be $106 billion, the percentage is ($106/$21427.1)*100

= 0.004947*100

=0.4947%

0.497% is not up to 2%

6 0
3 years ago
15,000 units in a process that are 70% complete are referred to as:
KengaRu [80]

Answer:

(c) 10,500 equivalent units of production

Explanation:

Equivalent units of production helps manufacturing companies determine the average completed or finished products. Additionally, since there are many items in continuous production, without calculation of equivalent units, it would be difficult to determine how much money was incurred in production costs.

Using the formula

The number of partially completed units (15,000) x percentage of completion (70%) = equivalent units of production (10, 500)

5 0
3 years ago
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