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strojnjashka [21]
3 years ago
7

A mid-sized firm plans to issue 10 million shares during an IPO. The underwriter plans to sell shares at $22.55; however, many i

nvestors believe the company should be valued at $30.25 per share. If the underwriter charges a $2.0 million fee to undertake the IPO, how much will the firm raise in the IPO
Business
1 answer:
lapo4ka [179]3 years ago
8 0

Answer: $223,500,000

Explanation:

An Initial Public Offering is the first issuance of a Company's stock to the world. It is usually done through an Investment bank that underwrites the issuing and sells it at a price that they feel is right based on their Research.

In this scenario, the Underwriter thinks the amount that the stock should be offered at is $22.55 and so that is the price it will be offered at.

10,000,000 shares are to be offered.

$2,000,000 is to be taken as fees by the Underwriter.

The total money the company will make will therefore be,

= ( No. Of shares offered * Share Price) - Underwriting Fee

= (10,000,000 * 22.55) - 2,000,000

= 225,500,000 - 2,000,000

= $223,500,000

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Match the following functions with their descriptions.
drek231 [11]

Answer:

A. ERP

B. RFID

C. Barcodes

D. E-business

E. EDI

Explanation:

Here is the complete question :

Match the following functions with their descriptions.

(E-Business, EDI, Bar Codes, ERP, RFID)

A. It allows companies to organize and share information

B. It provides instantaneous tracking by containing identifying information

C. It provides complete visibility of product location

D. Provides access to global markets, suppliers and distribution channels

E. It enables exchange of documents in a standard format

Enterprise resource planning (ERP) is a software used to organise a business core processes

Electronic Data Interchange (EDI) is used to exchange business documents in a standardised format electronically

Types of EDI

  1. Direct EDI
  2. EDI via value added networks (VANs)
  3. Web EDI
  4. Mobile EDI

Advantages of EDI

  1. It increases business efficiency
  2. It reduces operating costs

Disadvantages of EDI

  1. Initial setup cost is usually quite high

Radio-frequency identification (RFID) is used to identify and track tags that are attached to items

Barcodes are used as a means of identification of a product. They can identify the country a product is manufactured.

Electronic business (E-business) has accelerated the rate of global integration. It has increased the access to global markets, suppliers and distribution channels.

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Which of the following conflict management methods is expressed as "We should express our concerns about the conflict and sugges
Inessa [10]

Option E, the A-E-I-O-U Model  is expressed as "We should express our concerns about the conflict and suggest a solution"

<u>Explanation: </u>

The Design of Conflict Management A-E-I-O-U, The "A-E-I-O-U" approach is used to address a range of standoffs: worker-to-boss, peer-to-peer, co-founder to co-founder, and stood for recognition, expression, identification, results, and understanding. It helps customers to be conscious of confrontations.

  • A - Acknowledge: Assume that the other person is right and will resolve the dispute.
  • E - Express: Acknowledge your beneficial intention and convey your own particular concern.
  • I - Identify: Recognize what you want to do.
  • O - Outcome: People react much more favourably because they can purchase into why their acts or behaviours change.
  • U - Understanding: Mutual understanding is attained
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Accounts receivable are shown as _____ in the AR customer file.
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Answer:

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Explanation:

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Which of the following theorems explains the relationship between interest rates and bond prices? For a given change in interest
Eddi Din [679]

Answer:

For a given change in interest rates, the prices of long-term bonds will change more drastically than the prices of short-term bonds.

Explanation:

A bond can be defined as a fixed income instrument that firms use as a source of longer-term funding or loans.

The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.

In Economics, bonds could either be issued at discount or premium.

Hence, a bond that is being issued at a discount has its stated rate lower than the market interest rate, on the specific date of issuance. Also, a bond that is being issued at a premium, has its stated rate higher than the market interest rate on the specific date of issuance.

Generally, bond price is inversely proportional to its interest rate, thus, when interest rates are high, bond prices would be low and when interest rates are low, bond prices are high.

The theorem that best explains the relationship between interest rates and bond prices is that for a given change in interest rates, the prices of long-term bonds will change more drastically than the prices of short-term bonds because long-term bondholders are liable to higher rate of interest rate risks than the short-term bondholders.

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