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3 years ago

In which market does a company's initial public offering (IPO) occur?

Business

1 answer:

kirza4 [7]3 years ago

7 0

Answer:

A primary

Explanation:

The operations of the capital markets are categorized into primary and secondary markets. The primary market is where enterprises sell new bonds and equity to the public for the first time. A good example is the initial public offering (IPO). An IPO is a process of issuing out new shares of a corporation to the public for the first time.

The primary market is for new shares, bonds, and other money market securities issued for sale for the first time.

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Question 3 of 10

Naily [24]

Answer:

C. The customer still owes $0.05

Explanation:

Four $20 bills= $ 80

Three $1 bills= $3

Six quarters = $1.50

One dime = $0.10

One nickel= $0.05

Five pennies = $0.005

Total= $84.7

7 0

3 years ago

Indirect costs are traced to cost objects.

Aneli [31]

Answer:

Explanation:

The following statement is false and true

1. Indirect costs are traced to cost objects - This statement is false because it is not directly traced to the cost objectives. It is traced through the cost drivers.

2. Yes, this statement is true because the cost drivers are used to allocate the indirect cost to their cost objects

3. Yes, this statement is true because for computing the allocation rate, we have to divide the total allocation cost to its allocation base

4. Yes, this statement is true because the cost drivers play very important for cost allocation. Without cost drivers, the allocation of the cost would not be possible

5. This statement is false because depreciation should be allocated based on its useful life rather than the number of square feet because the number of square feet occupied is used to allocate the renting cost

8 0

3 years ago

employees earn vacation pay at a rate of one day per month. During December, 35 employees qualify for one vacation day each. The

Blababa [14]

Answer:

Listed below are a few transactions and events of Maxum Company.

1. Employees earn vacation pay at a rate of one day per month. During December, 35 employees qualify for one vacation day each. Their average daily wage is $160 per employee.

2. During December, Maxum Company sold 4,500 units of a product that carries a 60-day warranty. December sales for this product total $125,000. The company expects 7% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $10.

Prepare any necessary adjusting entries at December 31, 2017, for Maxum Company’s year-end financial statements for each of the above separate transactions and events.

Vacation benefits expense

= number of employees × number(s) of day × the average daily wage per employee

Given,

number of employees = 35

number(s) of day = 1

The average daily wage per employee = $160

= 35 employees × 1 day × $160

= $5,600

Warranty expense

= number of units of products sold × percentage of the units for warranty × the average repair cost per unit

Given,

number of units of products sold = 4500 units

percentage of the units for warranty = 7%

The average repair cost per unit = $10

= 4,500 units × 7% × $10

= $3,150

P.S. The attached image duly shows the answer.

4 0

3 years ago

In the long run, a monopolistically competitive firm will earn: (A) normal profits because economic profits will attract new fir

enot [183]

Answer: Option (A) is correct.

Explanation:

Correct Option: Normal profits because economic profits will attract new firms and there are no entry restrictions.

In a monopolistically competitive market, firms will earn an economic profit in the short run, so new firms attracted with these profits and decided to enter into the market in the long run.

There is no barriers on entry and exit of the firms in the monopolistically competitive market. When new firms enters into the market, as a result supply of differentiated products increases.

This causes the firm's market demand curve to shift leftwards. It will continue shifting to the left in the firm market demand curve till the point where it is nearly tangent to the average total cost curve.

At this point, firms earns zero normal profit and can earn normal profits in the long run same as a perfectly competitive firm.

3 0

3 years ago

On January 1, 2020, Sunland Corporation sold a building that cost $251,060 and that had accumulated depreciation of $109,510 on

ra1l [238]

Answer:

$44,592

Explanation:

The book value of a building = Cost Price - Accumulated Depreciation

= $(251,060 - 109,510)

= $141,550

The present value of the non-interest-bearing note due on January 1, 2023 (or Discounted Cash Flow) =

FV/(1+i)^t

= $241,060/(1+0.09)^3

= $241,060/1.29503

= $186,142

Gain on Sale of the building = $(186,142 - 141,550) = $44,592

7 0

3 years ago