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kogti [31]
2 years ago
11

A firm commitment arrangement with an investment banker occurs when the: issue is solidly accepted in the market as evidenced by

a large price increase. investment banker buys the securities for less than the offering price and accepts the risk of not being able to sell them. spread between the buying and selling price is less than one percent. investment banker sells as much of the security as the market can bear without a price decrease. syndicate is in place to handle the issue.
Business
1 answer:
Elina [12.6K]2 years ago
6 0

Answer:

A firm commitment arrangement with an investment banker occurs when an investment banker buys the securities for less than the offering price and accepts the risk of not being able to sell them.

The correct option is B.

Explanation:

A firm commitment arrangement happens when an investment banker buys the securities for less than the offering price and accepts the risk of not being able to sell them.

However, the issuer receives a little less money than the offering price but he gets a specific amount for all the security being issued. The risk rests completely on the investment banker.

Therefore, the correct option is B.

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You are running a hot Internet company. Analysts predict that its earnings will grow at 30% per year for the next five years. Af
Andrej [43]

Answer:

The present value of the future earnings is $51,981,214.36

Explanation:

The present value of the earning can be calculated by discounting the earnings for the next five years along with calculating the terminal value of earnings at the end of the five years when the growth rate in earnings becomes constant and discounting it back to the present value.

Taking the value in millions,

Present Value = 1 * (1+0.3) / (1+0.08)  +  1 * (1+0.3)^2 / (1+0.08)^2  +  

1 * (1+0.3)^3 / (1+0.08)^3  +  1 * (1+0.3)^4 / (1+0.08)^4  +  1 * (1+0.3)^5 / (1+0.08)^5  + [( 1 * (1+0.3)^5 * (1+0.02) / (0.08 - 0.02)) / (1+0.08)^5]

Present value = $51.98121436 million or $51,981,214.36

8 0
2 years ago
For each of the following examples, explain whether it is a case of external or internal economies of scale:
777dan777 [17]

Whether it is a case of external or internal economies of scale:

A. A number of firms doing contract research for the drug industry are concentrated

Larger changes within the industry lead to external economies of scale, so as the industry expands, the average cost of doing business decreases.

when external economies of scale exist?

External economies of scale take place when an industry as a whole expands and businesses profit from lower long-term average costs. External economies of scale are also known as advantageous external outcomes of industrial development.

An external economy of scale is shared by competitors, internal economies of scale provide larger competitive advantages.

To learn more about external economies refer to:

brainly.com/question/20354469

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8 0
1 year ago
If you consider yourself to be highly logical and you enjoy working computers, the career cluster might be best for you
vovikov84 [41]

Answer:

Information Technology Cluster

Explanation:

The Information Technology cluster uses your love of technology to learn how to design, develop and manage different types of software and hardware programs.

The information technology cluster is composed of the following four career pathways: information support and services, interactive media, network systems, and programming and software development.

3 0
2 years ago
Read 2 more answers
how much does a cardiologist surgeon who has done 6 years of residency earns in Australia(in US dollar)??​
babymother [125]

Answer:

Explanation:

The base pay rate is about 350,000 Aus dollars. This morning the Aus$ had an exchange rate of 1 Aus$ = 0.7001 US dollars, so that means the base rate is about 0.7 * 350000 = 245,000 US dollars. I don't know what the 6 years does to the equation.

5 0
3 years ago
A market where tenants negotiate rent and other terms with property owners or their managers is referred to as a:_________
goldfiish [28.3K]

A user market is one where tenants bargain rent and other conditions with property owners or their managers.

<h3>What are Business User Markets?</h3>

Several other user markets also make purchases, either for their own consumption or with the goal of redistribution to others, in addition to selling finished goods and services to supply chain organizations. When making these purchases, the buyer typically does not significantly alter the goods from their original state. Although technically these markets are also a component of the supply chain, the majority of business users do not actively participate in or directly support production.

Any method that lets customers get involved in a marketing effort is known as user-generated marketing. User-generated marketing is just as much a kind of public relations as anything else because it gives a target audience a more participatory and interesting experience.

To know more about Business User Markets, visit: brainly.com/question/25492268

#SPJ4

4 0
1 year ago
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