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vampirchik [111]
2 years ago
12

In larger organizations that have stock ownership plans, the employees may not see a strong link between their actions and the c

ompany's stock price. True False
Business
1 answer:
NemiM [27]2 years ago
8 0

Answer:

True

Explanation:

Stock ownership plans refer to those plans whereby the existing employees are provided with an opportunity to purchase the stocks of the company at a lower price than they are offered in the open market

Employee stock option plans are one of the stock ownership plans. The condition for availing such plans is usually the length of the service of the employees. The benefit is recorded as an employee compensation.

In the context of big organizations with innumerable employees, employees may not be able to identify themselves as significant and may consider those with major chunk of shareholdings as the ones whose actions affect the stock price.

This being merely an illusion since collective efforts of all the employees affect the company's stock price.

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Beedles Inc. needed to raise $14 million in an IPO and chose Security Brokers Inc. to underwrite the offering. The agreement sta
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Answer:

a. Profit = $780,000

b. Profit = $3,780,000

c. Loss = $2,220,000

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Beedles Inc. needed to raise $14 million in an IPO and chose Security Brokers Inc. to underwrite the offering. The agreement stated that Security Brokers would sell 3 million shares to the public and provide $14 million in net proceeds to Beedles. The out-of-pocket expenses incurred by Security Brokers in the design and distribution of the issue were $220,000. What profit or loss would Security Brokers incur if the issue were sold to the public at the following average price

a. $5 per share

b. $6 per share

c. $4 per share

The explanation of the answer is now given as follows:

The profit or loss can be calculated using the following formula:

Profit or loss = Sales proceed - Net proceeds to Beedles - Out-of-pocket expenses incurred by Security Brokers ........... (1)

Where;

Sales proceed = Average price * Number of shares = Average price per share * 3,000,000

Net proceeds to Beedles = 14,000,000

Out-of-pocket expenses incurred by Security Brokers = $220,000

We can proceed as follows:

a. profit or loss at average price $5 per share

Substituting all the values into equation (1), we have:

Profit or loss = ($5 * 3,000,000) - $14,000,000 - $220,000 = $780,000 profit

b. profit or loss at average price $6 per share

Substituting all the values into equation (1), we have:

Profit or loss = ($6 * 3,000,000) - $14,000,000 - $220,000 = $3,780,000  profit

c. profit or loss at average price $4 per share

Substituting all the values into equation (1), we have:

Profit or loss = ($4 * 3,000,000) - $14,000,000 - $220,000 = -$2,220,000 loss

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3 years ago
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A. usually have strict discipline at home

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An investment will pay $20,000 at the end of the first year, $30,000 at the end of the second year, and $50,000 at the end of th
kondaur [170]

Answer:

$80541.

Explanation:

Please find the detailed answer as follows:

The Present value is the present value of a future amount of money or stream of cash flows of a specified rate of return . Please refer to the present value formula .

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