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Oduvanchick [21]
2 years ago
11

A company recently announced that it would be going public. The usual suspects, Morgan Stanley, JPMorgan Chase, and Goldman Sach

s will be the lead underwriters. The value of the company has been estimated to range from a low of $5billion to a high of $100billion, with $45billion being the most likely value. If there is a 20% chance that the price will be at the low end, a 10% chance that the price will be at the high end, and a 70% chance that the price will be in the middle, what value should the owner expect the company to price at?
Business
1 answer:
Deffense [45]2 years ago
8 0

Answer:

$42.5 billion

Explanation:

the expected value formula = ∑ (valueₙ x probabilityₙ)

expected value = (low value x probability of low value) + (most likely value x probability of most likely value) + (high value x probability of high value)

= ($5 billion x 20%) + ($45 billion x 70%) + ($100 billion x 10%) = $1 billion + $31.5 billion + $10 billion = $42.5 billion

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On its 2008 balance sheet, Sherman Books showed a balance of retained earnings equal to $510 million. On its 2009 balance sheet,
Marta_Voda [28]

Answer:

a. The company must have had net income equal to zero in 2009.

Explanation:

If on its 2008 balance sheet, Sherman Books showed a balance of retained earnings equal to $510 million, and on its 2009 balance sheet, the balance of retained earnings was also equal to $510 million; then what is true is that  the company must have had net income equal to zero in 2009.

Retained earnings is the profit amount or net income left over and taken back into the business after it has paid out dividends to its shareholders.

However it is unlikely that the company will pay out the entire amount it earns in a particular year but a percentage of earnings.

In the case of Sherman, it is unlikely that the company made a profit of $200 million and paid out every bit as dividends to shareholders but what is most likely is that there was no profit made for retention in 2009

5 0
2 years ago
Peter heads the communications department of Xenon Inc. He shows concern for the personal needs of his followers and helps them
Vitek1552 [10]

Answer:

a supportive leader

Explanation:

A supportive leader is a leader who is able to identify changes and assistance that are needed to promote the well-being of his team members and timely resolve all unnecessary issues with the aim of delivering a high standard of performance.

A supportive leader is usually kind, friendly, and concerned about the personal needs and welfare of his followers. He also leaves his door open to be approached by many people for advice and help, and also inspires them perform tasks assigned to them with enthusiasm.

Therefore, Peter's behavior implies that he is most likely <u>a supportive leader</u>.

5 0
2 years ago
The average cost per seat on the 75-passenger Get-There-Safe Bus company's trip from Milwaukee to Minneapolis, on which no refre
dezoksy [38]

Answer:

The answer is by charging lower price on remaining three ticket (any ticket price above $0)

Explanation:

As company is not giving any refreshment so it not incurring any variable cost. So here sales is equal to contibution and every single dollar revenue generated is a contribtion towards fixed cost and targeted profit. So by decreasing sale price on remaining tickets company will be able to sell them and this sale will result in more profit to the company.

8 0
3 years ago
Discuss whether or not consumers benefit more from a market economic system or a mixed economic system. *
storchak [24]

Answer:

compared to a mixed economy, a market economy tends to benefit the consumers.

This is mainly because the government intervention and restrictions are minimum in a market economy, compared to a mixed economy in which the government plays a major part as an economic agent and a regulator.

A free market system's main aim is to enhance  the competitions and the freedom of choice for the consumers.

However, in the real world scenarios, pure free market systems are difficult to be seen and most of the time, the economies are Mixed economies.

Even in USA's economy 40% of the economy consists of the government agencies and activities.

This is mainly due to the economic malpractices by the producers and corporations.

Explanation:

7 0
3 years ago
What are the objectives of a social enterprise?
Alexxx [7]
A social enterprise is a business that aims to achieve a particular public or community mission (social, environmental, cultural or economic), and reinvests the majority of its profits into achieving that mission.
8 0
3 years ago
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