Answer:
C) the syndicate member assumes liability for unsold shares and the selling group member does not.
Explanation:
In the trading of a security, the dealer's spread refers to the difference between the bid and asked prices of a security, which represents the dealer's markup, or profit from a security transaction.
Simply stated, the bid-ask spread refers to the amount by which the bid price by a dealer is lower than the ask-price for a security or an asset in the market at a specific period of time.
The bid-ask spread exists because of the need for dealers to cover expenses and make a profit. A bid-ask spread is use in the transaction of the following items; options, future contracts, stocks, and currency pairs.
The primary difference between an underwriting syndicate member and a selling group member in a firm commitment underwriting is that the syndicate member assumes liability for unsold shares and the selling group member does not.
This phenomenon is known as the <u>"income"</u> effect.
The income effect refers to an adjustment in the interest of a decent or administration, instigated by an adjustment in the purchasers' optional wage.
The income effect is the impact on real income when value changes - it tends to be certain and negative. Beneath, as value falls, and expecting ostensible salary is steady, a similar ostensible pay can purchase a greater amount of the great - thus interest for this (and different products) is probably going to rise.
Answer:
37.00%
Explanation:
The computation of the weighted average contribution margin ratio is shown below:
Particulars Sporting Goods Sports Gear Total
Contribution Margin Ratio 30% 50%
Sales Mix - Weights 65% 35%
Weighted Contribution Margin 19.50% 17.50% 37.00%
We simply multiplied the contribution margin ratio with the sales mix weighted so that the weighted contribution margin ratio could come
The company should sell product xy as it is
and should not process it further.
Given:
Original
Incurred cost of $5,000
No. of units is 6,400
Price per unit is $33
Processed product
No. of units is 6,400
Costs for further processing is $8/unit
New price per unit is $39
First, know the total costs
Original: $5,000
Processed: 6,400 x $8 = $51,200
Next, find the sales revenue for the original
and processed product
Original: $33 x 6,400 = $211,200
Processed: $39 x 6,400 = $249,600
Then, get the net profit for the original and
processed product
Original: $211,200 - $5,000 = $206,200
Processed: $249,600 - $51,200 = $198,400
With the data provided, you can find out that
the net profit is higher on the original/unprocessed product compared to the
processed product even if the selling price and revenue is much higher.
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The answer for this question would be
A) Rationing or the first option.
