1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Georgia [21]
3 years ago
10

Idle Time Gaming, Inc., has reached the point where it needs several million dollars in order to expand and follow its strategic

plan. In negotiations with the investment banker, they agree to issue 40 million shares of common stock, at $22/share. If the investment banker's fee for underwriting the total sale is 6.82%, what is the discounted price that the investment bank is willing to pay Idle Time for the shares
Business
1 answer:
laila [671]3 years ago
7 0

Answer:

The bank is wiling to pay "approximately $820,000,000".

Explanation:

As we know,

Earnings from selling of $22/start sharing $40 million shareholdings:

⇒ 40,000,000\times 22

⇒ $880,000,000

Fee of banker at 6.82% will be:

⇒ 880,000,000\times  0.0682

⇒ $60,016,000

Idle investment company willingness to spend on time will be:

⇒ 880,000,000-60,016,000

⇒ $819,984,000

So that the bank is willing to pay "approximately $820,000,000".

You might be interested in
A company exhibits strategic intent when ______.
Tcecarenko [31]

Answer:

The correct answer is A. it relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective.

Explanation:

A strategic intention is the aspiration of a corporation that aims at its effective development in the long term, for this reason it must be an objective for which all personnel have appropriated. Normally, in order to reach this level, the company must go through a stage of recognition, analysis and projection where the market and growth expectations are taken into account in order to go in the best way for the benefit of both its internal and external users.

3 0
3 years ago
Read 2 more answers
Outdoor Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s most popul
schepotkina [342]

Answer:

                                                       Ski             Golf           Fishing

                                                       Guard       Guard       Guard

selling price                                   $260         $330        $205

variable cost                                  $120          $180         $135

contribution margin                       $140          $150         $70

machine time                                 9 min.        12 min.      11 min.

lbs. of pellets                                  12              7                11

total machine time is the constraint in the production process

1a)

contribution margin per                 $933.33   $750         $381.82

machine hour

1b)

ski guard since its contribution margin per machine hour is much higher than the rest of the products

1c)

fishing guard since its contribution margin per machine hour is much lower than the rest of the products

2a)

                                                       Ski             Golf           Fishing

                                                       Guard       Guard       Guard

contribution margin per                 $11.67      $21.43       $6.36

lbs. of pellets

2b)

Golf guard since its contribution margin per lb. of pellets is much higher than the rest of the products

2c)

fishing guard since its contribution margin per lb. of pellets is much lower than the rest of the products

3)

Golf Guard ($150)

4 0
2 years ago
What does it mean to describe deposit insurance as undermining market discipline​? Because ▼ most few depositors are fully​ insu
Katena32 [7]

Answer:

most

little

risk taking

regardless of

Explanation:

The FDIC insures the deposits of depositors.

The Federal Deposit  Insurance Corporation (FDIC) was established after the great depression. Bank run was attributed to be one of the causes of the great depression. The FDIC increases confidence of depositors in banks because they insure the deposit of bank customers. In the case a bank fails, customers are assured that they would not lose their monies deposited

Because banks knows that the deposit of customers are insured, it increases their risk taking. this is known as adverse selection

7 0
3 years ago
Pasternik Company produces and sells two products, Alpha and Zeta. The following information is available relating to its setup
ryzh [129]

Answer:

E) None of these answer choices is correct.

Explanation:

<u>Overhead bases on labor hours:</u>

250 units / 25 per batch:  10 batch

total overhead cost: $ 2,000 setup per batch x 10 batch= $ 20,000

20,000 overhead cost / 1,000 labor hours = 20 dollars per hour

1,000 labor hours / 250 units of output: 4 labor hours per unit

4 labor hours x $ 20 = $ 80

<u>Overhead based on activity:</u>

Setup cost: 2,000

units per batch: 25

$ 2,000 / 25 units = $ 80

6 0
3 years ago
José, the sales manager for a software development firm, is working on the problem of increasing sales by using the rational mod
IgorLugansk [536]
 Jose needs to implement and evaluate the training program chosen i<span>n the fourth and final step.
</span>Decision making<span> is the process of </span>making<span> choices by identifying a </span>decision. The process has 7 steps.
The first step is to identify the decision, the second to gather relevant information, the third to identify the alternatives. the fourth to weigh the evidence, the fifth to choose among alternatives, the sixt to take action and the last, to r<span>eview the decision.</span>
7 0
3 years ago
Other questions:
  • The method of slicing digital messages into parcels, transmitting them along different communication paths, and reassembling the
    14·1 answer
  • Janice is a 48-year-old married woman who uses technology as a major source of information and shopping. she has a dvd drive on
    12·1 answer
  • Alyssa owns and operates a store in a country experiencing a high rate of inflation. In order to prevent the value of money in h
    12·1 answer
  • The development of a new information system is economically justified if the _____.
    8·1 answer
  • Factory X manufactures steam cleaners for engines and has a high level of sales variability. The units sell for $3,200 each but
    15·1 answer
  • Pro forma balance sheet Peabody &amp; Peabody has 2019 sales of $10 million. It wishes to analyze expected performance and finan
    9·1 answer
  • The marginal benefit Bob gets from purchasing a third pair of gloves is Select one:_____.
    14·1 answer
  • Jolly Giant Burgers purchased a commercial dishwasher by paying cash of $8,000. The dishwasher's fair value on the date of the p
    12·1 answer
  • You need a 30-year, fixed-rate mortgage to buy a new home for $280,000. Your mortgage bank will lend you the money at an APR of
    9·1 answer
  • If you were buying a bond, which of the following characteristics would you most likely be looking for?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!