An investment banker agrees to underwrite an issue of 10 million shares of stock for TWResearch, Inc. on a firm commitment basis. The investment banker pays $10.50 per share to TWResearch, Inc. for the 10 million shares of stock. It then sells those shares to the public for $11.20 per share.
Answer:
In a firm commitment offering, the investment banker bears the financial risk and buys the securities from TWResearch to sell to the public at its own terms.
In a best efforts offering, TWResearch, Inc. bears the financial risk and only makes its best efforts to sell the securities without buying them from TWResearch.
Explanation:
With a firm commitment offering, the investment banker enters into an agreement to purchase all the securities from TWResearch at an agreed price, and then, commits itself to selling the securities to the public at its own chosen price. As it pockets the ensuing gain or loss, the investment banker bears all the financial risk. With a best efforts offering, the investment banker does not assume inventory risk, but makes its best efforts in selling the securities. TWResearch bears the residual financial risk since the underwriter forwards to TWResearch all the proceeds from the issue, after deducting its commission.
Answer:
The overhead cost per unit of product A1 under activity based costing is $13.53
Explanation:
Answer:
The answer is: A) the secondary market; prospectus
Explanation:
Secondary market refers to the stock exchange where investors buy and sell securities that they already possess. The secondary market is what most people think about when they refer to a stock market. A primary market only sells stocks that are being issued for the first time, like an IPO.
The prospectus of a company is a legal document provided by public companies or mutual funds that include information about the company's strategies, financial statements and top management's background.
Answer:
Consider the following analysis.
Explanation:
Dena owns 500 acres of farm land in southeastern Maryland.
Adjusted basis for the land is $4,80,000 and $4,00,000 mortgage on the land.
Bulding Fair market value is $9,00,000
Dena realized gain or los is $0 beacuse there is no cash recd against exchange.
So, Dena realized gai/loss is $0
So, Dena recognized gain is $4,00,000
Answer:
$25,402
Explanation:
Calculation for the amount of interest accrued at December 31, 2016
Using this formula
Interest expense accrued= 2016 Beginning Note payable liability*Interest rate
Let plug in the formula
Interest expense accrued =$317,520*8%
Interest expense accrued =$25,402
Therefore the interest expense accrued at December 31, 2016 is closest to $25,402