Answer:
A
Explanation:
IPO , a synonym for initial public offering is a process of offering to the public new stock issuance through an underwriter.
IPO comes with a lot of benefit , nevertheless financial economist have some concern about it .
Of all the options given in the question , the long run of a new public company , (three to five years from the date of issue) being superior to the overall market returns is the only exception
Answer:
Journal Entry
Dr. Contingent Consideration Liability $500,000
Cr. Goodwill $500,000
Explanation:
It is assumed that the decline in the fair value is the correction of the acquisition entry. It means due to this event the consideration liability and goodwill are overstated we need to rectify the balances.
Hence,
The contingent consideration liability will be debited to reduce the liability and goodwill will also be decreased by crediting the goodwill account.
The combination of expansionary monetary policy and a self-regulating economy will cause real GDP will rise to the level above natural real GDP and the recessionary gap would hence turn into an inflationary gap situation.
<h3>What do you mean by monetary policy?</h3>
Monetary Policy refers to the control of the quantity of money available in an economy through which new money is supplied.
The self-regulating economy experiences a recessionary gap. The real GDP is less than the level of natural real GDP. The gap is been corrected by the rightward shift in the short-run aggregate supply curve.
Due to interplay, real GDP will rise to the level above natural real GDP and the recessionary gap turn into an inflationary gap.
Learn more about Monetary policy here:
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Answer: B. 1 DEF Jan 50 Call
Explanation:
The Options Clearing Corporation (OCC) acting under its mandate of being an issuer and guarantor for options and futures contracts can alter options prices but does not do so for prices based on normal dividends as they are more regular and their effects are already accounted for in the price of the call.
When a company calls a one-time special cash dividend, this is new to the market which would not have incorporated it into the price of the call. The OCC will then adjust the price to account for this.
In this case it will do so by subtracting the dividend from the call;
= 55 - 5
= $50
The customer will then have 1 DEF Jan 50 Call
.
Answer:
dirty price: 1,225.39
Explanation:
When we purchase the bond, we are paying the bond and the accrued interest
<em>bond price:</em> 1,000 x 120.59375/100 = 1,205.9375 = 1,205.94
accrued interest at purchase:
face value x bond coupon rate x time
1,000 par value x 6% x 59/(59+2+121) =
1,000 x 0.06 x 59/182 = <em>19,45</em>
Total amount for the bonds: 1,205.94 + 19.45 = 1,225.39
