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Brrunno [24]
3 years ago
9

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?a. 66.0.
b. 49.5.
c. 48.0.
d. 38.5.
Business
1 answer:
nignag [31]3 years ago
5 0

Answer:

42.5

Explanation:

The computation of the expected value is shown below:

= Low price range × chance percentage +  high price range × chance percentage +  most likely price range × chance percentage

= $5 billion × 20% + $100 billion × 10% + $45 billion × 70%

= $1 + $10 + $31.5

= 42.5

Basically we multiplied each one with its chance percentage

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The Dougherty Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4
Bezzdna [24]

Answer:

a. Manufacturing overhead rate - Department 100 = $57,500 / 4,000 hours = $14.375 per machine hours

Manufacturing overhead rate - Department 200 = $62,500/8,000 hours = $7.8125 per machine hours

b.  Journal Entries

S/N    Account Titles                         Debit           Credit

1       Inventory - Raw material          $110,000

             Account Payable                                     $110,000

2    Work in process                            $32,500

     Manufacturing overhead              $7,500

             Inventory - Raw materials                         $40,000

3    Work in process                            $52,500

     Manufacturing overhead              $11,000

              Materials control                                       $63,500

4      Manufacturing overhead            $17,250

               Leasehold payable                                    $16,250

               Utilities payable                                          $1,000

5.     WIP Control (14,375*800)            $11,500

                Manufacturing overhead allocation         $11,500

c. Particulars                               Dep 100     Dep 200   Total

Direct materials                           $32,500     $13,500   $46,000

Direct labour                                $52,500     $13,500   $106,000

Manufacturing overhead             $35,750     $18,750   $54,500    

(11,000+7,500+16,250+1,000

+9,000+4,750+3,750+1,250)

Total Cost of Job A                     $120,750   $85,750    $206,500

7 0
3 years ago
Suppose a relatively poor country receives foreign aid to be used for education.​ However, a large portion of the money is stole
makkiz [27]

Answer:

True

Explanation:

There are two reason which suggest that action will generate greater inequality.

1. some amount is stolen by government official thus fund is getting allocated to person who are already self-sufficient hence causing inequality

2. even left portion of fund is not allocated proportionally to all the area and thereby increasing the inequality.

6 0
3 years ago
TopChop sells hairstyling franchises. TopChop receives $56,000 from a new franchisee for providing initial training, equipment a
valentina_108 [34]

Answer:

$73,500  is the revenue TopChop will recognize for the arrangement with Carlos.

Explanation:

Revenue is calculated as follows.

= amount received + Use of name

= $56,000 + $35,000 × (1÷2)

= $73,500

New franchise fee can be immediately recognised as income.

5 0
3 years ago
What common flaw has been found in research studies funded by pharmaceutical companies?
marissa [1.9K]

The common flaw that was found in research funded by pharmaceutical companies was a lack of transparency.

<h3 /><h3>Why is transparency needed in the pharmaceutical industry?</h3>

It is essential that there is greater awareness, control and review of pharmaceutical research, as this industry directly impacts the health and quality of life of individuals, and must be an ethical and accessible means to the population.

Therefore, the lack of transparency in the pharmaceutical industry can occur due to centralization and conflict of interests, in addition to bribery and fraud, and must be duly fought by control, legislation and punishment for such actions.

Find out more about research studies here:

brainly.com/question/968894

#SPJ1

3 0
1 year ago
Elliptical Consulting is a consulting firm owned and operated by Jayson Neese. The following end-of-period spreadsheet was prepa
skad [1K]

Answer and Explanation:

The Preparation of income statement, retained earnings statement, and balance sheet is prepared below:-

<u>                                           Elliptical Consulting</u>

<u>                                            Income statement</u>

<u>                            For the Year Ended June 30, 2016</u>

<u>Particulars                                    Amount</u>

Revenue      

Fees earned                                 $60,000  

Less:

Expenses      

Salary expense               $32,375    

Supplies expense           $2,100    

Depreciation expense    $1,500    

Miscellaneous expense $2,000    

Total expense                                 $37,975  

Net income                                      $22,025

<u>                                        Elliptical Consulting</u>

<u>                                        Retained earning</u>

<u>                             For the Year Ended June 30, 2016</u>

<u>Particulars                                            Amount</u>

Opening balance                                 $52,200  

Add:Net income for the year               $22,025  

Total                                                       $74,225  

Less: Dividends                                       $2,000  

Closing balance of retained

earnings                                                  $72,225

<u>                                     Elliptical Consulting</u>

<u>                                       Balance Sheet</u>

<u>                         For the Year Ended June 30, 2016</u>

<u>Particulars                                            Amount</u>

Assets

Cash                             $27,000  

Accounts receivable   $53,500  

Supplies                       $900  

Total current assets                             $81,400  

Property plant and equipment

Office Equipment      $30,500  

Less:Accumulated

Depreciation              $6,000             $24,500  

Total Assets                                         $105,900  

Liabilities & Stockholder's Equity

Accounts payable     $3,300

Salaries payable        $375

Total liabilities                                      $3,675

Stockholder's Equity    

Common Stock        $30,000  

Retained earnings    $72,225  

total stockholders Equity                    $102,225  

Total liabilities and Stockholder's

Equity                                                    $105,900

8 0
3 years ago
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