Under the Best efforts method, the underwriter sells as many shares as possible but may or may not sell all of the new shares.
The best efforts method is used in the oil and gas industry to account for certain operating expenses sells as many shares as possible. Under the successful efforts method, a company only capitalizes those costs associated with the location of new oil and gas reserves when those reserves have been found.
The term best efforts refers to an agreement made by a service provider to do whatever it takes to fulfill the requirements of a contract. In finance, an underwriter makes a best efforts or good faith promise to the issuer to sell as much of their securities offering as possible. While the two parties come to an agreement for the sale of some securities, the underwriter doesn't guarantee to sell them all.
- Best efforts is a term for a commitment from an underwriter to make their best effort to sell as much as possible of a securities offering.
- It is also a general service agreement term used in place of a firm deliverable commitment.
- The opposite is a firm commitment or bought deal, in which the underwriter buys all shares or debt and has to sell it all to make money.
Learn more about Best efforts method here
brainly.com/question/22372489
#SPJ4
Answer:
D. bundling the goods
Explanation:
The company in this case is being discreet to the needs of its consumers.
Inorder to kill two birds with one stone; meaning to meet their consumers value for good X and Y they could make more profits by selling them together as a package.
By doing so both Catherine and Ben would purchase same package, reducing the costs of producing separate products for the company.
Answer:
<u>Cash Budget for the First Quarter.</u>
Total Receipts :
Collections From Customers $188,700
Sale of Equipment $3,060
$191,760
Total Payments :
Direct materials $43,860
Direct labor $71,400
Manufacturing overhead $35,700
Selling and administrative expenses $45,900
Purchase of securities $14,280
$210,840
Net Receipts / (Payments) ($19,080)
Opening Balance $30,600
Closing Balance $11,520
Required Balance $25,500
Loan (Shortfall) $14,250
Explanation:
A cash budget shows a future estimate of future cash incomes and cash expenditures.
Answer:
True
Explanation:
The nominal GDP is divided by the real GDP to calculate GDP deflator which is used to calculate the CPI and Inflation rate. So it is true that the GDP delfator is used to calculate inflation rate.
Answer:
$21,450
Explanation:
In March,
Total direct labor hours required:
= Production budget × Direct labor hour required per unit
= 2,000 × 0.5
= 1,000 hours
Total direct labor cost = Total direct labor hours required × Direct labor hour per rate
= 1,000 hours × $13
= $13,000
In April,
Total direct labor hours required:
= Production budget × Direct labor hour required per unit
= 1,300 × 0.5
= 650 hours
Total direct labor cost = Total direct labor hours required × Direct labor hour per rate
= 650 hours × $13
= $8,450
Combined direct labor cost = $13,000 + $8,450
= $21,450
