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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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Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 33,817 $ 40,739 $ 42,
SOVA2 [1]

Answer:

Simon Company's

Balance Sheets at December 31L

                                          Current Yr   %      1 Yr Ago     %     2 Yrs Ago   %

Assets

Cash                                    $ 33,817      6     $ 40,739    8     $ 42,420    10

Accounts receivable, net    100,012      17        69,175   14         53,814     13 Merchandise inventory      128,260     22        91,410    18       59,663     14

Prepaid expenses                  11,001       2        10,482     2          4,576      1

Plant assets, net                   311,773    53     292,386   57     255,527    61

Total assets                    $ 584,863    100  $ 504,192  100  $ 416,000  100

Liabilities and Equity

Accounts payable           $ 141,262      24    $ 85,208    17     $ 56,010    13

Long-term notes payable 108,855      19        118,283    23       91,936    22 Common stock,

        $10 par value           163,500      28       163,500   32     163,500    39 Retained earnings             171,246      29        137,201   27      104,554    25

Total liabilities & equity$ 584,863    100    $ 504,192  100 $ 416,000   100

2. Assuming annual sales have not changed in the last three years, the change in accounts receivable as a percentage of total assets is favorable.  It is always better to maintain low accounts receivable, thereby reducing credit risk exposures.

3. Assuming annual sales have not changed in the last three years, the change in merchandise inventory as a percentage of total assets is favorable.  Less inventory means that working capital is not being tied down to inventory.

Explanation:

Common-size percentages are used in analyzing the balance sheet.   The calculations set each line item as a percent of the total assets.

7 0
3 years ago
The upper management of a large national retail grocery store has passed along the new goals of improving customer service to th
valentina_108 [34]

Answer:

The correct answer will be "Tactical planning".

Explanation:

  • Tactical scheduling or planning seems to be an essential factor of commercial enterprise which differs significantly from traditional forms of effective decision-making. The phase of tactical preparation occurs in real-time, following the short-term results.
  • With nothing more than a tactical approach in place, the company will make fast strategies to excel inside that chosen field of work.

So the above seems to be the correct answer.

3 0
2 years ago
The term? "market" in economics refers to
timurjin [86]
I'm pretty sure it's option D
7 0
3 years ago
Which type of risk is most significant for bonds?
Gelneren [198K]
<span>meowner’s policy, installing smoke detectors helps to avoid risk. create risk. reduce risk. </span>
8 0
2 years ago
Emma Clumsy, the insured, makes a contract with Rest in Peace Insurance Company, the insurer, whereby Emma will pay quarterly pr
masya89 [10]

Answer:

Henry is the intended beneficiary of the insurance policy and as such, he is bound to the time limitations and all the other clauses included in the contract.

Explanation:

Intended beneficiaries are third parties that can benefit from a contract. Third parties are not part of the contract and may not even know that they were included as beneficiaries in it, but they are bound by all the legal clauses included in the contract. They must be included in the contract and all the benefits they might obtain have to be explicitly established.  

5 0
3 years ago
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