1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Viktor [21]
3 years ago
12

DRK, Inc., has just sold 110,000 shares in an initial public offering. The underwriter’s explicit fees were $66,000. The offerin

g price for the shares was $60, but immediately upon issue, the share price jumped to $66.00. a. What is the total cost to DRK of the equity issue?
Business
1 answer:
iris [78.8K]3 years ago
4 0

Answer: $726000

Explanation:

Based on the information given in the question, the total cost to DRK of the equity issue will be calculated thus:

Firstly, we'll calculate the implicit cost per share which will be:

= Increased price - Offering price

= $66 - $60

= $6

Then, the total implicit cost will be:

= $6 × 110000

= $660000

Then, the total cost to DRK of the equity issue will be:

= Explicit cost + Implicit cost

= $66000 + $660000

= $726000

You might be interested in
Vertical marketing systems are best described as ______. Multiple choice question. the elimination of costly backward and forwar
USPshnik [31]

Answer:

professionally managed and centrally coordinated marketing channels.

Explanation:

Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research. Thus, it comprises of all the activities such as, identifying, anticipating set of medium and processes for creating, promoting, delivering, and exchanging goods and services that has value for customers. It typically, involves understanding customer needs, building and maintaining healthy relationships with them in order to scale up your business.

Vertical marketing systems used as a promotional and sales technique of goods and services by various business firms are best described as professionally managed and centrally coordinated marketing channels.

6 0
3 years ago
What is a bond bubble and how did it help inflate the stock market?
victus00 [196]
The daily chart for the Dow shows how fast the stock market can decline when the 'inflating parabolic bubble' pops.
6 0
3 years ago
X-Mart purchased $300 of merchandise and paid immediately. Demonstrate the journal entry to record this transaction, assuming th
Troyanec [42]

Answer:

Debit Merchandise Inventory $300; credit Cash $300

Explanation:

The journal entry to record the given transaction is shown below:

Merchandise inventory Dr $300

    To Cash $300

(being cash paid is recorded)

Here the merchandise inventory is debited as it increased the assets and credited the cash as it decreased the assets

5 0
3 years ago
g Overhead costs are assigned to production using an overhead application rate, whereas no such "application rate" is used to as
Hoochie [10]

Answer:

Overhead costs are assigned to production using an overhead application rate, whereas no such "application rate" is used to assign the costs of direct materials and direct labor to production. The reason for this difference in procedures is that:

Overhead is an indirect cost which cannot be traced easily and directly to specific units of product.

Explanation:

Manufacturing overhead costs are not direct costs.  They are not generally traceable to units of products.  They include such indirect costs as Depreciation Expense, Property Taxes, Indirect Labor, Indirect Materials, etc.  No unit of product can be ascribed such costs except as an approximation.

7 0
3 years ago
Which of the following is a “DO” regarding scannable resumes
Ratling [72]
Average recruiters eliminates a lot of applicants by scanning their resumes and find some keywords in the resume here are some "DO" things that should be in your resume :
- make it a text based format, don't rely on picture and graph since it cannot be scanned
- AVOID any typos
- do not use text box, since the scanner will categorized as graph

Hope this helps
5 0
3 years ago
Other questions:
  • Wanda is organizing an Employee Appreciation Day event and is soliciting vendors to provide food and drinks. There are 638 emplo
    13·1 answer
  • All of the following have had an effect on structural unemployment except:_________.
    6·1 answer
  • ​Rachel's Beach Shoppe charges tourists to use their credit cards to purchase merchandise at the vacation store. On​ Monday, Rac
    10·1 answer
  • A physical count of supplies on hand at the end of May for Masters, Inc. Indicated $1,245 of supplies on hand. The general ledge
    7·2 answers
  • The social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging
    10·1 answer
  • Expected direct materials purchases in Metlock Company are $204000 in the first quarter and $264000 in the second quarter. 35 pe
    14·1 answer
  • "A potential client is 81 years old and has asked his representative for recommendations of speculative "Dot Com" stocks. The cu
    9·1 answer
  • Stream outflow is important to coastal landscapes because streams provide ________ to the coastal environment.
    6·1 answer
  • A refrigerator used by a wholesale warehouse has a cost of $64,000, an estimated residual value of $5,200, and an estimated usef
    13·1 answer
  • The most important useful measure of cost is
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!