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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".

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Answer:

Option (c) is correct.

Explanation:

Given that,

Labor costs = $175,000

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Factory overhead applied to production = $23,000

Therefore, the journal entry is as follows:

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Answer:

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Explanation:

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3 years ago
What is a diversionary incentive?
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Answer:E- A temptation to start a crisis to create public support at home

Explanation: A diversionary incentive is a term used to describe the various attempts of a foreign country to create crisis in a given country in order to gain support at home.

Diversionary incentive is usually implemented by certain countries for their own selfish gains,they want their own Citizens to focus their minds and interests in crisis outside their own Country,hence lossing focus of the problems bedeviling their own country.

5 0
3 years ago
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Answer:

The correct answer is

Juan has dividend income of $250,000.

good luck ❤

6 0
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A new municipal bond issue had a dated date of January 1, 2018. The first coupon was due on August 1, 2018. The customer bought
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Answer:

1 month

Explanation:

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When bonds are sold including accrued interests, they are said to be sold at their dirty price.

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