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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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Which of the following lists two things that both decrease the money supply?
zysi [14]

Answer: B. raise the discount rate, make open market sales are two things that both decrease the money supply.

Explanation: If the discount rate is high, less banks are likely to borrow money from the Federal Reserve because they will be paying a higher interest rate on the borrowed funds. Open market refers to banks buying and selling different government entities in an open market.

3 0
2 years ago
Misk Co. purchased the following securities during 2018 to be classified as held-to-maturity securities, trading securities, or
shtirl [24]

Answer:

C. III only

Explanation:

Option III states An investment in stock that Misk does not intend to sell in the near future. Which of above securities purchased by Misk should be classified as available-for-sale securities?

The choice of this option alone is based on the reasoning that Available for Sale (AFS) Securities are usually presented based on their fair values. As such an increase in investment will be needed when the Fair value exceeds is more than the cost of the securities.

The other effect of the transaction of Misk Co is that it will lead to an increase in other comprehensive income.

4 0
3 years ago
Watson Company purchased assets of Holmes Ltd. at auction for $1,390,000. An independent appraisal of the fair value of the asse
____ [38]

Answer:

Dr land        $278,000

Dr building  $347,500

Dr equipment $556,000

Dr inventories $208,500

Cr cash                                 $1,390,000

Explanation:

The total amount spent in acquiring the assets is $1,390,000 which needs to be shared between the assets acquired on the basis of individual values of the assets

Total of individual assets' values=$304000+$380000+ $608000+$228000=$ 1,520,000.00  

Cost attributable to land:$304000/$1520000*$1,390,000=$ 278,000.00  

Cost attributable to Building:$380000/$1520000*$1390000=$ 347,500.00  

cost attributable to equipment=$608000/$1520000*$1390000=$556,000.00

cost attributable to inventories=$228000/$1520000*$1390000 =$208,500.00  

6 0
3 years ago
A nursery has $40,000 of inventory in dogwood trees and red maple trees. the profit on a dogwood tree is 27% and the profit on a
Afina-wow [57]

Answer: The amount invested in the dogwood tree was $5000, while $35000 was invested in the red maple tree.

We arrive at the answer as follows:

Let the proportion of dogwood trees be x.

Then the proportion of red maple trees in the nursery will be 1-x, since there are only two types of trees in the nursery.

We use the following formula to find the proportion dogwood and maple trees in the nursery:

20 = 27x + 19(1-x)

Solving for x we get

20 = 27x + 19 - 19x

x = \frac{1}{8}

We can find the proportion of maple trees as follows:

1 - \frac{1}{8} = \frac{7}{8}

Since we have the proportions, we can easily find the amount invested in type of tree as follows:

Dogwood = 40000*\frac{1}{8} = 5000

Red Maple tree = 40000*\frac{7}{8} = 35000

5 0
3 years ago
Frank works for a nutrition counseling company and is now being considered for a promotion. Why might his employer request to ch
Paul [167]

Answer:

aa

It might be negative for the company to promote a

6 0
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