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IRINA_888 [86]
3 years ago
9

The managing underwriter has set the POP for a new issue offering at $50 per share. After negotiating, the proceeds to be receiv

ed by the issuer upon closing are set at $48 per share. The managing underwriter will retain a management fee of $.25 per share and the selling concession has been set at $.75 per share. The spread is: A $2.00 B $1.25 C $1.00 D $.25
Business
1 answer:
Vadim26 [7]3 years ago
7 0

Answer:

A $2.00

Explanation:

The computation of the spread is shown below;

Spread represent the gross compensation made to the underwriters. It shows the difference between the Public Offering Price and the amount per share that was collected by the issuer.

So, it should be

= $50 per share - $48 per share

= $2 per share

hence, the correct option is a.

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Which course is an integral part of your academic program and is required every semester? Additionally, this course will require
Aneli [31]

Answer:

INTR

Explanation:

INTR is an essential part of the academic program that every student must take in each semester. This course is also known as the applied learning practicum and it is used to ensure that students have both theoretical knowledge as well as practical field experience. This will help students to apply theoretical knowledge to real-life situations.

4 0
4 years ago
On January 2, 2009, L Co. issued at par $20,000 of 4% bonds convertible in total into 1,000 shares of L's common stock. No bonds
MrRissso [65]

Answer:

The correct answer is $1.2 per share.

Explanation:

According to the scenario, the computation of the given data are as follows:

Interest expense of Bonds = $20,000 × 4% = $800

Now, Interest expense of Bond, After tax = $800 × ( 1 - 50%) = $800 × 0.50

= $400

So, we can calculate the diluted earning by using following formula:

Diluted Earning = (Net income + Interest expense after tax) ÷ Total outstanding shares outstanding

Where, Total outstanding shares = 1,000 shares + 1,000 shares = 2,000 shares

By putting the value, we get

Diluted earning = ($2000 + $400 ) ÷ 2,000

= $1.2 per share

4 0
3 years ago
Lightwire Co. made the decision a decade ago to make the copper wires it needs for its products in house rather than outsourcing
sineoko [7]

Answer: <em>Option (A) is correct</em>

Explanation:

Here in the given case, in the context of supply change, the corporation did go wrong on part of adaptability. Adaptability is known as a feature of a process or of a system. This term has been utilized in several different discipline and organization operations. According to Gronau and Andresen, adaptability in organizational management can be referred to as ability to bring changes to oneself or something in order to fit the changes occurring.

3 0
3 years ago
A company produces a single product. Variable production costs are $12.50 per unit and variable selling and administrative expen
wlad13 [49]

Answer:

value of ending inventory under variable production is $104375

Explanation:

given data

Variable production costs = $12.50 per unit

variable selling and administrative expenses = $3.50 per unit

Fixed manufacturing overhead totals = $41,000

Fixed selling and administration expenses total = $45,000

production = 4,500 units

sales = 3,850 units

to find out

the dollar value of the ending inventory under variable costing would be

solution

we find here ending inventory that is express as

ending inventory = production - sale

ending inventory = 4500 - 3850

ending inventory = 8350

so

variable production cost of 8350 units are

variable production cost = 8350 × $12.50

variable production cost = $104375

so value of ending inventory under variable production is $104375

8 0
3 years ago
A company had 6,950,000 net income for the year. Is net sales were 14,700,000 for the same period. Calculate its profit margin.
kobusy [5.1K]
0.46 or 46% hope this helps
5 0
3 years ago
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