The difference between the price an issuer receives and the offering price at which shares are sold to investors is known as The gross spreads.
Gross spread is the distinction among the underwriting fee obtained by the issuing business enterprise and the actual rate offered to the making an investment public. In different words, the gross spread is the monetary institution's reduce or benefit from the IPO listing.
The gross proceeds suggest the overall sum of money the syndicate increases from the primary traders. add the underpricing to the gross proceeds to obtain the marketplace price presented.
An underwriting unfold is the distinction among the greenback amount that underwriters, which includes investment banks, pay an issuing for its securities and the greenback quantity that underwriters obtain from promoting the securities in a public imparting. In one of the maximum common definitions, the spread is the space among the bid and the ask charges of a protection or asset, like a inventory, bond, or commodity.
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Answer:
Lump sum payment today =$6,659,388.81
Explanation:
The lump sum payment that would make her indifferent is the present value of the annuity discounted at the required rate of return of 5%.
PV = A × (1 - ((1+r)^(-n))/n)
A- $450,000, r- 5%, n = 25-1 = 24
<em>Because , the first payment occurs today, we wil take the number of payment to be 24 (i.e 25 - 1) . And then add the first payment to the Present value the of the 24 year annuity. </em>
<em>This is so because the first payment need not be discounted because it is already in present value.</em>
PV = $450,000 × 1- (1.05)^(-24)/0.05
= 6,209,388.81
Total Present value = $450,000 + 6,209,388.81
= $6,659,388.81
Answer:
The amount of impairment loss should C&R recognize is $6,700,000
Explanation:
According to the given data we have that the book value of division's assets is $28.9 million and fair value of division’s assets is $22.2 million.
Therefore, in order to calculate the amount of impairment loss should C&R recognize we would have to use the following formula:
impairment loss=book value of division's assets - fair value of division’s assets
impairment loss=$28.9 million-$22.2 million
impairment loss=$6,700,000
The amount of impairment loss should C&R recognize is $6,700,000
I would say this would be true as if extra capital like an electric shovel in an open pit mine resulted in a fall of output then of course it should be questioned why that occurred since it is a result that is counterintuitive ie does not make sense as one would expect an increase in capital would result in an increase in output.