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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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True or False: It is common for debt investors to push entrepreneurs to pursue less risky business strategies for their ventures
NNADVOKAT [17]

it is false and uncommon for debt investors to push entrepreneurs to pursue less risky business strategies for their ventures.

Basically, debt investment entails an investor who lends his money to a firm, individual with an expectation of repayment of loan plus interest from them at a particular date.

The practice that borrowers should engage in less risky business strategies for their ventures will not be encouraged by debt investors because it is less risky and will not yield high return to allow them repay their loan quick enough.

Therefore, it is false and uncommon for debt investors to push entrepreneurs to pursue less risky business strategies for their ventures.

Read more about this here

<em>brainly.com/question/25219850</em>

3 0
2 years ago
If you can borrow funds from a finance company at 12 percent compounded weekly​, the EAR for the loan is nothing​%. ​ (Round to
arlik [135]

Answer:

If compounded weekly =

No of weeks in a year=52

N= 52

EAR= (1+I/N)^N -1

=(1+0.12/52)^52 -1

=0.127=12.7% EAR

If compounded semiannually

N= 2

EAR= (1+0.13/2)^2 -1

=13.42%

It is better to borrow at 12% compounded weekly as the EAR is lower than 13% compounded semi annually.

Explanation:

4 0
2 years ago
Business fluctuations are systematic increases and decreases in real GDP. Please select the best answer from the choices provide
BlackZzzverrR [31]
From the subject of economics, specifically macroeconomics,  it says that the statement above is false. <span>Business cycles, not business fluctuations, are systematic increases and decreases in real GDP. Business fluctuations are called unsystematic changes. </span>
5 0
2 years ago
Read 2 more answers
On January 1, 2009, Coronado Industries purchased for $690000, equipment having a useful life of ten years and an estimated salv
JulijaS [17]

Answer:

There is not gain in this operation so the answer is $0

Explanation:

There are some journal entries that needs to be done to have a full picture of the statement

* Purchase

Fixed Assets                        690.000

Cash                                                        690.000

* Monthly depreciation

Since, the FA was depreciated during 8 years. Firstly you have to calculate the amount that can be depreciate on a monthly basis

Amount to be depreciated = (Cost of the FA - Salvage value) = (690.000-48.600) = 641.400

Then calculate the yearly depreciation

Yearly depreciation = ((amount to be depreciated/useful life) * years used) =

(641.400/10*8) = 513.120

then the journal entry to record the monthly depreciation for 8 years is

Depreciation expense          513.120

Acc Depreciation                                   513.120

* Post the Journal Entry to record the sell of FA

You have to reverse the Acc Depreciation and credit the FA

Cash                                     152.500

Fixed assets                                         690.000

Acc depreciation                   513.120

Loss on sale of FA                   24.380

6 0
3 years ago
g McGuire was an employee of First National Bank of Grayson (FNBG). FNBG participated in a Kentucky Housing Corporation (KHC) pr
Crazy boy [7]

Answer:

The court concluded truthfully, as he had done all the analysis and acknowledged the documentation and investment purposes.

The program scammed funds which might have been used for small-income housing by the government agency.

<em>United States v. McGuire, 744 F.2d 1197 (Cir. 11, 1984).</em>

6 0
3 years ago
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