Universal Waste Disposal sold 1,350,000 shares of stock at $24.62 per share. The investment banker's commission was 5% of the va
lue of the stock. Accounting fees were $450,000, legal fees were $1,225,000, printing costs were $275,000, and other selling expenses were estimated to be $300,000. To the nearest dollar, what net proceeds did Universal Waste Disposal receive?
The proceeds that UWD received will be as follows: Number of shares 1,350,000 share price $24.62 Amount realized from the shares: 1,350,000×24.62 =33,237,000
Total amount to be deducted will be: (Commission+Accounting fees+legal fees+printing costs+selling expenses) commission=$1,661,850 Accounting fees=$450,000 legal fees=$1,225, 000 printing cost=$275,000 selling expenses=$300,000
Mackay could have left out this list and simply said that the root cost 2500 florins. But he gave the list to have a better understanding of the valuation of trade. Now, the cost could have simply being layed out. But then this list helped helped to give a better perspective of the valuation of the bulb and also how it could be used to replace money
An optimum decision as defined in the question can be defined as the most appropriate decision taken by a manager in the light of what they to be the most desirable consequences for the company.
This simply means that when an event or occurrence takes place in a company, the managers have the responsibility to take the best decisions for the company. The best decision is therefore called the optimum decision; that is the highest level of decision that solves the problem with the smallest of consequences.
