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nikklg [1K]
3 years ago
5

The Woods Co. and the Speith Co. have both announced IPOs at $52 per share. One of these is undervalued by $11, and the other is

overvalued by $5, but you have no way of knowing which is which. You plan to buy 1,900 shares of each issue. If an issue is underpriced, it will be rationed, and only half your order will be filled. a. If you could get 1,900 shares in Woods and 1,900 shares in Speith, what would your profit be
Business
1 answer:
Sergio039 [100]3 years ago
4 0

Answer:

$11,400

Explanation:

Data provided as per the question is below:-

Shares = 1,900

Undervalued amount = $11

Overvalued amount= $5

The computation of profit is shown below:-

Profit = Shares × Undervalue amount - Shares × Overvalued amount

= 1,900 × $11 - 1,900 × $5

= $20,900 - $9,500

= $11,400

Therefore for computing the profit we simply applied the above formula.

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When you are in a conflict with another person, it is important to remember:
Galina-37 [17]
C. that you also helped create the conflict
6 0
3 years ago
Suppose the country of Stan has fixed its exchange rate to the dollar. The official exchange rate is 0.50 U.S. dollars per rupee
In-s [12.5K]

Answer and Explanation:

1. At 0fficial exchange rate:

100 * 0.5 = $50

what I want to buy would be purchased at $50

at market exchange rate:

0.25 x 100 = $25

products bought from this place are not a good deal as I am paying more than the market exchange rate.

2. at equilibrium exchange rate:

100 x 0.25% = $25

the price is $25

3. from answers 1 and 2, I will not want demand Stan's rupees. the products are costly to get.

4. Stan's currency is obviously overvalued. the people from this country now has increased purchasing power so they can purchase goods in dollars, therefore they would be supplying their currency.

5. They will have to buy up the surplus of rupees so that they can easily keep up with maintaining the rupee at half a dollar.

8 0
3 years ago
Use the graph for a competitive market ti answer the question below
Svetlanka [38]

Answer:

$3.25

Explanation:

The new price for cigarettes will be the intersection point between the demand curves and the new supply curve.

Assuming S1 is the old supply curve without taxes and the new supply curve is S2 with taxes. The new price is the intersection of S2 and the demand curve, which is at $3.25.

3 0
3 years ago
On July 3, 2009, Devin purchased 100 shares of CDEF stock at a cost of $30 per share. His commission was $29. He sold his shares
vichka [17]

Answer:

$1,692

Explanation:

Data provided in the question:

Number of shares purchased = 100

Cost of stock = $30 per share

Commission = $29

Selling price per share = $45

Commission for selling = $29

Earned dividends = $2.50 per share

Now,

Total Return

= Number of Shares × (Sale Price - cost + Total dividends) - Total Commissions

or

Total Return = 100 × ($45 - $30 + $2.50) - (2 × $29)

or

Total Return = $1750 - $58

or

Total Return = $1,692

8 0
3 years ago
"how is the process of egg donation and selection related to consumer consumption?"
kvv77 [185]
Egg donation is a process in which egg id donated by a woman to another woman so that the second woman can conceive.In this process the person who wants to look for a egg donor can go to infertility clinics or egg donating websites. There the person can search for the type of egg donor he/she wants. The egg donor that looks physically and mentally sound to the person can be chosen. Some people also look for egg donors with special qualities such as excellence in sports, music, dance, academics, etc. Thus, the process of egg donation and selection is related to consumer consumption. 
5 0
3 years ago
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