Under firm-commitment underwriting, the underwriter bears the entire risk that the shares will not be sold to the public at the specified offering price.
What is Underwriter?
Any person who assesses and takes on another party's risk in exchange for payment—which frequently comes in the form of a commission, premium, spread, or interest—is an underwriter. While underwriters work for insurance firms, agents and brokers represent both consumers and insurance companies. The mortgage, insurance, equity, and some prevalent forms of debt security trading are just a few of the financial industries where underwriters play a crucial part. Sometimes referred to as a book runner, a lead underwriter holds this position.
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Jean-Jacques Rousseau (<span>/<span>ruːˈsoʊ</span>/</span>;[1] French: [ʒɑ̃ʒak ʁuso]; 28 June 1712 – 2 July 1778) was a Genevan philosopher, writer, and composer of the 18th century, mainly active in France. His political philosophy influenced the Enlightenment across Europe, as well as aspects of the French Revolution and the overall development of modern political and educational thought.
Rousseau's novel Emile, or On Education is a treatise on the education of the whole person for citizenship. His sentimental novel Julie, or the New Heloisewas of importance to the development of pre-romanticism[2] and romanticism in fiction.[3] Rousseau's autobiographical writings—his Confessions, which initiated the modern autobiography, and his Reveries of a Solitary Walker—exemplified the late 18th-century movement known as the Age of Sensibility, and featured an increased focus on subjectivity and introspection that later characterized modern writing. His Discourse on Inequality and The Social Contract are cornerstones in modern political and social thought.
During the period of the French Revolution, Rousseau was the most popular of the philosophes among members of the Jacobin Club. He was interred as a national hero in the Panthéon in Paris, in 1794, 16 years after his death.
Answer:
Management might opt for other than the most economical choice because:
- Controlling. E.g. Franchise can be helpful to increase earnings fast but the uncertainly of quality supplied by franchisees can hurt a firm in the long run.
- Branding. E.g. Some firms have a reputation for their hand-made products. Industrialized production can reduce cost per unit and increase productivity but the brand surely is affected.
Explanation:
The market risk premium of Fund P will be 5.5%.
<h3>How to calculate the market risk premium?</h3>
It should be noted that as per CAPM, the return in stock will be:
= Risk free rate + Beta × Market risk premium
8.90% = 4.5% + 0.8 × Market risk premium.
Market risk premium = 5.5%
In conclusion, the market risk premium of Fund P will be 5.5%.
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Answer:
I use coffee daily. The supply for the coffee I bought (Colombian Coffee) is few then the price is expensive. As the price is expensive I can only buy 2 pounds of this item per month. My demand is affected for the price that producers set to this coffee. I would like to buy more but then the supply of this product is limited therefore the prices will always be high.
