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2 years ago

Which of the following is a primary market transaction?

Business

1 answer:

Naddika [18.5K]2 years ago

7 0

Answer:

d. IBM issues 2,000,000 shares of new stock and sells them to the public.

Explanation:

In the Primary market, new shares are issued for the first time.

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American Hat has $1,000 face value bonds outstanding with a market price of $1,150. The bonds pay interest semiannually, mature

Aneli [31]

Answer:

Current Yield of bond is 3.53%

Explanation:

Current yield is the ratio of coupon payment of a bond to its current market price.

Formula for Current yield is as follow

Current Yield = Annual Coupon payment / Current market price

First we need to calculate the coupon payment by using following formula

YTM = [ C + ( F - P ) / n ] / [ ( F + P ) / 2 ]

5.8%/2 = [ C + ( $1,000 - $1,150 ) / 16 ] / [ ( $1,000 + $1,150 ) / 2 ]

2.9% = [ C + ( $1,000 - $1,150 ) / 16 ] / [ ( $1,000 + $1,150 ) / 2 ]

2.9% = [ C - $9.375 ] / $1,075

1,075 x 2.9% = C - $9.375

31.175 = C - 9.375

C = 31.175 + 9.375 = $40.55 annually

Current Yield = Annual Coupon payment / Current market price

Current Yield = $40.55 / $1,150 = 0.0353 = 3.53%

7 0

2 years ago

Read 2 more answers

vSelected financial data for The Portland Porcelain Works Coffee Mug Division is as follows: Sales $ 2 comma 000 comma 000 Oper

ioda

Answer:

Capital turnover = 2.5 times

Explanation:

given data

Sales = $2,000,000

Operating income = $400,000

Total assets = $800,000

Current liabilities = $120,000

Target rate of return = 13%

Weighted average cost of capital = 6%

to find out

Portland Porcelain Works Coffee Mug Division capital turnover

solution

we get here Portland Porcelain Works Coffee Mug Division capital turnover that is find here by dividing sales by total assets

Capital turnover = $\frac{sales}{total\ assets}$ ......................1

put here value

Capital turnover = $\frac{2,000,000}{800,000}$

Capital turnover = 2.5 times

5 0

2 years ago

On average, LB Inc. receives 138 payments each day with an average value of $42 each. These payments clear the bank in an averag

Oxana [17]

Answer: c) $7,535

Explanation:

The Collection Float refers to the time that it takes for a deposited check to become available to the account owner after the check has been deposited.

The Average amount is calculated thus;

= No. of payments * Clearing days * average value of payment

= 138 * 1.3 * 42

= $7,535

6 0

2 years ago

g An increase in demand is represented by a a. movement downward and to the right along a demand curve. b. movement upward and t

Lana71 [14]

Answer: c. rightward shift of a demand curve.

Explanation:

When there is movement along the demand curve, this is due to a change in the price of the good.

However, an increase in demand is noted by a rightward shift in the Demand curve. This is to signify that the demand has changed even though the price had remained the same. This shift is meant to signify that something else apart from price has caused an increase in demand such as an increase in income. After the shift, the price will have to change to reflect a new Equilibrium which will be the new intersection point with the Supply Curve.

I have attached a graph showing what happens when Quantity Demand increases.

4 0

2 years ago

If Sam's, a local watering hole, increased the price of a pint of Guinness by 20%, it estimates the number of MBA students purch

Leni [432]

Answer:

Total Revenues would increase because Demand is Inelastic

Explanation:

Demand is buyers ability & willingness to buy at a given price, time.

Elasticity of Demand is quantity demanded responsiveness to price change.

More Elastic Demand means quantity demanded responds highly to change in price. Percentage Change in Quantity Demanded > Percentage Change in Price. Elasticity of Demand [Δ%Q / Δ%P] >1 in this case. Price and Total Revenue (PxQ) are inversely related in this case ; i.e - price rise, TR fall & price fall, TR rise.

Less Elastic Demand means quantity demanded responds less to change in price. Percentage Change in Quantity Demanded < Percentage Change in Price. Elasticity of Demand [Δ%Q / Δ%P] < 1 in this case. Price and Total Revenue (PxQ) are positively related in this case ; i.e - price rise, TR rise & price fall, TR fall.

So: If Sam's Pint price change by 20% leads to demand fall by 4%, the demand is less elastic i.e < 1. Hence, Total Revenue will increase with increase in price.

6 0

2 years ago