If an underwriter overestimates the demand for a firm's securities in a firm commitment offering,the underwriter can
A. sell the shares back to the issuing firm at a discount.
B. lower the bid price to the issuing firm.
C. increase the fees charged to the issuing firm.
D. cancel the issue and refund the fees paid by the issuing firm.
E. none of the above
Answers
Option D. If an underwriter overestimates the demand for a firm's securities in a firm commitment offering, they can cancel the issue and refund the fees paid by the issuing firm.
This means that the underwriter will not be able to sell the securities at the price they had anticipated and therefore cannot fulfill their commitment to the issuing firm. As a result, the underwriter will have to cancel the offering and return any fees paid by the issuing firm.
A firm commitment offering, the underwriter agrees to purchase all the securities being offered by the issuer and then resell them to the public. If the underwriter overestimates the demand for the securities and is unable to sell them at the expected price, they may face losses. In such a scenario, the underwriter has several options, including lowering the bid price to the issuing firm or increasing the fees charged to the issuer. However, if these options do not work, the underwriter may have to cancel the offering and refund the fees paid by the issuing firm. Therefore, option D is the most appropriate answer.
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Related Questions
Why should you log into your online or mobile app account with the travel charge card vendor?.
Answers
There are different reasons why people travel. Why one should you log into your online or mobile account with the travel charge card vendor is that;
Because it helps to give quick access to statements, payments, and mobile alerts.What does a government travel card help you with?The application process for a government travel credit card is known to be very hard when compared to personal credit card.
The government card can help you with credit as by putting credit into the hands of people who are not qualified to get credit on their own or due to other reasons. With the card, it is very easy to do any transaction and make any payment.
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Robert placed the following assets into service for his packing and shipping company this year
Answers
Option B. The way that Robert would eliminate the requirement to use the mid-quarter convention B.Claim the Section 179 deduction for the delivery truck.
What is meant by mid-quarter convention?According to the mid-quarter convention, a company that purchases fixed assets during a reporting quarter should treat them as though they were purchased at the halfway point of the quarter.
When the total depreciable basis of MACRS property placed in service during the final three months of the client's tax year exceeds 40% of the total depreciable basis of all MACRS property placed in service throughout the entire year, you must utilize the mid-quarter convention.
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Robert placed the following assets into service for his packing and shipping company this year: April 3: Desk with a basis of $1,100. July 30: Computer software with a basis of $4,200. October 30: Delivery truck with a basis of $33,000. All assets were used exclusively for business purposes. How may Robert eliminate the requirement to use the mid-quarter convention?
A.Claim the special depreciation allowance for the computer software.
B.Claim the Section 179 deduction for the delivery truck.
C.Elect to expense the desk on the tax return in accordance with the de minimis safe harbor of the tangible property regulations.
D.Use the ADS system to depreciate the truck and the desk.
hai brought 6 pears fo 3.60 how much did each pear cost?
Answers
Answer: $0.6
Explanation:
3.6/6 is 0.6
There will be a lower equilibrium price and quantity if _____.
demand increases and supply increases
demand increases and supply decreases
demand decreases and supply stays the same
none of the above
Answers
Answer:
Its C demand decreases, and supply stays the same.
Explanation:
I took the test and got a 100%
using a perpetual inventory system, how should a company record the sale of inventory costing $460 for $940 on account?
Answers
Under the perpetual system, when inventory is sold, the business must make two entries.
How do you track sales in a perpetual inventory system?Depending on how the money is received, we will credit Sales Revenue and debit Cash or Accounts Receivable to record sales. However, in order to record the expense for the cost of products sold, we must also match the income received with the expenses incurred (remember the matching principle?).
Which entry comes after the recording of sales when a corporation uses a perpetual inventory system?Accounts Receivable, Sales Revenue, Cost of Goods Sold, and Inventory are used in the perpetual inventory system. Many accountants would utilize two entries for the transaction, with the first acknowledging income and cash due from the customer and the second
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Jeff Arnold and Reggie Bradford created WebMD, an Internet provider of health care information. During the development of this high-growth company, Arnold and Bradford attracted a group of investors who purchased stock in their company and provided them with ______ financing.
Answers
Arnold and Bradford attracted a group of investors who purchased stock in their company and provided them with equity financing.
What is equity financing?Equity financing can be defined as the way in which a company or an organization raise capital by selling their stock.
Most companies or organization tend to sell their shares or stock to investors who then provide them with equity financing as this will enables them to raise money.
Therefore Arnold and Bradford attracted a group of investors who purchased stock in their company and provided them with equity financing.
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prepare a double entry ledger entries January 3 took out of the cash till$50 and put into the business by cheque Jan 4 the proprietor put a further$5000 in to business by cheque .please I need it quick
Answers
Explanation:
In the first entry, $50 is taken out of the cash till and put into the business as drawings. The effect is a decrease in the cash balance and an increase in the drawings account.
In the second entry, the proprietor puts a further $5000 into the business by cheque. The effect is an increase in the capital account and an increase in the bank balance.
It's important to note that "Drawings" and "Capital" are the accounts used to record the personal transactions of the business owner in this case, it is assumed that the business is a proprietorship. Other forms of business may have different accounts to record the personal transactions of the owne
how do you find marginal cost? for 50 points
Answers
Marginal cost= change in total cost/change in quantity
Please describe in detail the process of shifting from a
traditional organization to a virtual organization. How does
technology affect the organization's design, efficiency, and
effectiveness?
Answers
Overall, shifting to a virtual organization requires careful planning, technological infrastructure, and a supportive culture. When effectively implemented, technology enhances communication, collaboration, and productivity, ultimately leading to improved organizational performance and effectiveness in a virtual work environment.
Shifting from a traditional organization to a virtual organization involves a series of steps and considerations. Here is a detailed process:
Assess Organizational Readiness: Evaluate the organization's readiness for virtualization. Consider factors such as the nature of work, technology infrastructure, employee skills, and management support.
Define Objectives and Scope: Clearly define the objectives and scope of the virtual organization. Determine the specific functions, teams, or processes that will transition to a virtual environment.
Establish Virtual Communication and Collaboration Tools: Identify and implement appropriate technology tools for virtual communication and collaboration. This may include video conferencing platforms, project management software, cloud-based storage, and communication tools like instant messaging and virtual workspaces.
Develop Virtual Work Policies: Create policies and guidelines that outline expectations, responsibilities, and protocols for virtual work. Address issues such as working hours, communication etiquette, data security, and remote performance evaluation.
Restructure Roles and Responsibilities: Rethink job roles and responsibilities to align with virtual work requirements. Determine how tasks will be assigned, monitored, and evaluated in a virtual setting. Foster a culture of accountability and autonomy.
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______ policy seeks to foster or discourage various economic or social activities, typically through subsidies or tax breaks.
Answers
Answer:
domestic
Explanation:
try it but i don't know! just a guess
What is the value for CFO, the initial outlay, for the project detailed below? A firm is deciding if it should pursue a new 5-year project that requires an initial outlay of $750,000 for construction and equipment, with no salvage value. Additional working capital investment of $40,000 is also required at the start of the project, which will be recovered by the firm at the project's conclusion. After conducting market research 6 months ago at a cost of $75,000, the firm expects after-tax cash flows of the new project to remain level at $150,000 per year for 5 years. The firm's cost of capital is 7.5%. a) -$750,000 b) -$790,000 c) -$865,000 d) -$825,000 What is the value for CF5, the final cash flow in year 5, for the same project as the previous question (repeated below)? A firm is deciding if it should pursue a new 5-year project that requires an initial outlay of $750,000 for construction and equipment, with no salvage value. Additional working capital investment of $40,000 is also required at the start of the project, which will be recovered by the firm at the project's conclusion. After conducting market research 6 months ago at a cost of $75,000, the firm expects after-tax cash flows of the new project to remain level at $150,000 per year for 5 years. The firm's cost of capital is 7.5%. a) $150,000 b) $225,000 c) $190,000 d) $110,000
Answers
For the given project, the initial outlay (CFO) is -$790,000, and the final cash flow in year 5 (CF5) is $150,000.
To determine the initial outlay (CFO), we need to consider the initial investment and any additional working capital investment. The initial investment for construction and equipment is $750,000, and the additional working capital investment is $40,000. Therefore, the total initial outlay is -$790,000 (negative because it represents an outflow of cash).
To find the final cash flow in year 5 (CF5), we need to consider the expected after-tax cash flows for each year. The firm expects after-tax cash flows of $150,000 per year for 5 years. Therefore, the final cash flow in year 5 is $150,000.
The firm's cost of capital is not directly related to the calculation of CFO and CF5. The cost of capital is used to evaluate the project's profitability and determine whether it meets the required rate of return. In this case, the cost of capital is given as 7.5% but is not used to calculate CFO or CF5.
In summary, the value for CFO (initial outlay) is -$790,000, and the value for CF5 (final cash flow in year 5) is $150,000 for the given project.
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As a salaried employee, Richard Hernandez earns $776 each week. In one week, he worked 50 hours. What is his gross pay for that week?
Answers
Answer:
He would get paid $38,800 he will get $38,800 because I multiplied $776 and the 50 hours and that's how I got $38,800.
What would the audience’s aims for a eulogy be?
- to hear about an important issue
- to feel inspired
✅to hear about the life of their friend or family member
- to feel concern about the state of the environment
Answers
Answer:
to hear about the life of their friend or family member
What are the additional costs you pay each year in order to borrow money in loans? This includes both interest and fees.
A: Annual Percentage rate (ARP)
B: Variable Interest
C: Origination Fees
d: Fixed interest
Answers
The annual percentage rate is the additional cost that you pay monthly in order to borrow money in loans.
What is the annual percentage rate?This rate is also expressed as the interest rate. It is the amount that one is charged for the money that they borrowed.
This amount is the actual cost of the loan that they got which is expressed in percentages.
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What Is the Formula for Calculating Earnings per Share (EPS)?
Answers
Why might some investors become careless about their portfolios ?
Answers
All choices can have unintended consequences. When those outcomes affect someone who had no part in the initial choice, what is it called?
Free market
Free resource
Eminent domain
Externality
Answers
When outcomes affect someone not involved in the initial choice, it is known as an externality.
What is an externality?
Externality is when production or consumption activities have an effect on people who are not part of the consumption or production activity. Externality can be positive or negative.
Positive externality occurs when the benefits to third parties not involved in production is greater than the cost. An example of an activity that generates positive externality is research and development.
Negative externality occurs when the cost to third parties not involved in production is greater than the benefits. An example of an activity that generates negative externality is pollution.
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After 10 years, some shares of stock originally purchased for $500 total were sold for $900 total. what was the yield on the investment?
Answers
Answer:
The statement is true
Explanation:
Sweety Corporation sold 4,000 ordinary shares with a par value of P 100 per share to a subscriber for P 105 per share receiving an initial payment of 30% of the subscription price. After repeated demands for the subscriber to pay the remaining balance but to no avail, the corporation was forced to sell the delinquent shares at a public auction, incurring advertising costs of P 24,000.
10. What should be the minimum bid price for the delinquent shares?
a. P 280,000.
b. P 294,000.
c. P 304,000.
d. P 318,000.
Answers
The minimum bid price should be the remaining balance plus the advertising costs, which is (p 126,000 - p 24,000) = p 102,000.
the minimum bid price for the delinquent shares should be:
b. p 294,000.
to calculate the minimum bid price for the delinquent shares, we need to consider the initial payment received and the advertising costs incurred.
the initial payment received from the subscriber is 30% of the subscription price, which is 30% of (4,000 shares x p 105 per share) = p 126,000.
the advertising costs incurred for the public auction are p 24,000. since the initial subscription price was p 105 per share, the minimum bid price for the delinquent shares would be (p 102,000 / 4,000 shares) = p 25.50 per share.
the total minimum bid price for the delinquent shares is (p 25.50 per share x 4,000 shares) = p 102,000.
however, the question asks for the minimum bid price for the delinquent shares, not the total bid price.
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when preparing consolidated financial statement work papers (cwps), unrealized intercompany gains, as a result of equipment or inventory sales by affiliates, are allocated proportionately by percent of ownership between parent and nci only when the selling affiliate is a. the parent and the sub is less than wholly owned. b. the sub and the sub is less than wholly owned. c. a wholly owned sub. d. the parent of a wholly owned sub.
Answers
When preparing consolidated financial statement work papers unrealized intercompany gains, the selling affiliate is a c. a wholly owned sub.
Unrealized intercompany profits happen when a business sells products or services to a related business but the sale hasn't yet been finalized, which means the products or services haven't yet been sold to a third party outside the company. To prevent double-counting sales, these profits must be removed when creating consolidated financial records.
Unrealized intercompany gains from the sale of assets or merchandise by affiliates are only proportionally distributed between the parent and NCI when the selling associate is a "wholly owned sub" when creating consolidated financial statement worksheets (CWPs). When a subsidiary is fully owned, the parent business owns all of the subsidiary's stock, giving it total authority over the subsidiary's activities and financial dealings.
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Which statement is true?
A. a savings savings plan and a budget don’t really have anything to do with each other.
B.it doesn’t do much good to have a savings plan if you don’t know how to budget your money.
Answers
Answer:
B. I'm pretty sure pls tell me if I'm wrong
The reason is that smaller companies would have lesser liquidity or working capital , so they would need to realise their investment as quick as possible. Hence they would be more focused on the cash inflows from the investment.
Whereas large companies would have a higher liquidity and they would be more concerned about the discounted future inflows and would asses the present value of the future inflows and present value of investment and make a capital budgeting decision.
Answers
Smaller companies prioritize quick realization of investments due to limited liquidity, focusing on immediate cash inflows.
Smaller companies often face constraints in terms of liquidity and working capital. As a result, they have a greater need for immediate cash inflows to meet their financial obligations and sustain their operations. When considering investment opportunities, these companies are more inclined to prioritize projects that offer quicker returns. This approach allows them to recover their investment and generate cash inflows in a shorter timeframe, improving their liquidity position.
On the other hand, larger companies typically have more significant financial resources and a higher level of liquidity. With a stronger financial position, they can afford to evaluate investments with a long-term perspective. Rather than focusing solely on immediate cash inflows, they take into account the discounted future inflows that an investment is expected to generate. Large companies employ capital budgeting techniques such as net present value (NPV) analysis, which considers the present value of future cash flows and compares it to the present value of the investment. By doing so, they can make informed decisions based on the long-term profitability and sustainability of the investment.
Hence, the divergent approaches of smaller and larger companies in capital budgeting stem from their varying liquidity positions. While smaller companies prioritize quick cash inflows due to limited liquidity, larger companies with higher liquidity assess the discounted future inflows and compare them to the present value of the investment to make more strategic and long-term capital budgeting decisions.
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The data show the
number of railroad crossing accidents for the 50 states
of the United States for a specific year. Construct a
histogram, frequency polygon, and ogive for the data.
Comment on the skewness of the distribution. (The data
in this exercise will be used for Exercise 14 in this
section.)
Class limits Frequency
1–43 24
44–86 17
87–129 3
130–172 4
173–215 1
216–258 0
259–301 0
302–344 1
Answers
Answer:
I hope this helps
Explanation:
216-258 0
Economically, a "want" is something __________.
Answers
Explanation:
a "want" is something desired
In a venture capital firm, what does the word "capital" refer to? Question 5 options: a. the capital of the state where it's located
b. the capital, or money, they invest in businesses c. the way they use capital letters for all their communications
d. where their offices are housed in the state capitol building
Answers
In a venture capital firm, the word "capital" refers to B. the capital, or money, they invest in businesses.
Venture capital firms are financial institutions that specialize in providing funding to start-ups and emerging businesses, often in exchange for equity or ownership stakes in these companies. They play a critical role in the growth and development of innovative businesses by providing the financial resources and guidance necessary to scale and succeed.
The term "capital" in this context refers to the financial resources the firm allocates for investments in these companies. This capital can come from various sources, including private investors, institutional funds, or the firm's own resources. Venture capital firms use their expertise and networks to identify promising companies, evaluate their potential, and support their growth through strategic capital deployment.
In summary, the word "capital" in a venture capital firm is related to the money they invest in businesses, supporting their growth and development by providing the necessary financial resources. This usage of the term is not related to the location of the firm or the way they use capital letters in their communications. Therefore, the correct option is B.
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Answer:
ITS B
Explanation:
I JUST GOT A 100%
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Do you think calling an employee a subordinate will impact their motivation levels?
(GIVE ME A PROS AND CONS)
Answers
Answer:
I believe that referring to the employee as a subordinate can negatively affect the employee's motivation levels.
Explanation:
Although an employee is subordinate to the company owner, or to other high-ranking employees, such as a manager, for example. Referring to the employee as a subordinate can negatively affect the employee's motivation and productivity. This is because this word can pass a tone of devaluation, where the employee can understand that he is not esteemed and necessary within the company. The feeling of irrelevance, can leave the employee saddened and unwilling to do his best work within the institution.
The following information applies to the questions displayed below At year-end December 31, Chan Company estimates its bad debts as 0.60% of its annual credit sales of $759,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $380 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off Required information [The following information applies to the questions displayed below] At year-end December 31, Chan Company estimates its bad debts as 0.60% of its annual credit sales of $759,000. Chan records its bad debts expense for that estimate. On the following February 1 , Chan decides that the $380 account of P. Park is uncollectible and writes it off as a bad debt. On June 5 . Park unexpectedly pays the amount prevlously written off. epare Chan's journal entries to record the transactions of December 31, February 1 , and June 5. Journal entry worksheet Wrote off P. Park's account as uncollectible. Journal entry worksheet 1 4 Reinstated Park's previously written off account. Journal entry worksheet < 12 Record the cash received on account.
Answers
Journal Entries:
December 31:
Bad Debts Expense $4,554
Allowance for Doubtful Accounts $4,554
February 1:
Allowance for Doubtful Accounts $380
Accounts Receivable - P. Park $380
June 5:
Accounts Receivable - P. Park $380
Allowance for Doubtful Accounts $380
Cash $380
To record the transactions of December 31, February 1, and June 5, Chan Company would make the following journal entries:
1. December 31:
- Debit Bad Debts Expense: $759,000 * 0.60% = $4,554
- Credit Allowance for Doubtful Accounts: $4,554
Explanation: This entry reflects the estimated bad debts expense based on 0.60% of the annual credit sales of $759,000.
2. February 1:
- Debit Allowance for Doubtful Accounts: $380
- Credit Accounts Receivable - P. Park: $380
Explanation: This entry represents the write-off of P. Park's account as uncollectible.
3. June 5:
- Debit Accounts Receivable - P. Park: $380
- Credit Allowance for Doubtful Accounts: $380
- Credit Cash: $380
Explanation: This entry reinstates Park's previously written-off account and records the cash received on account.
By following these journal entries, Chan Company accurately records the transactions related to bad debts and the collection of the previously written-off amount.
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When a winery positions it product as a "prize-winning Canadian wine," what positioning base is the company using?
Answers
When a winery positions its product as a "prize-winning Canadian wine," the company is using the positioning base of "Product Attribute" or "Quality."
The winery emphasises the product's traits or characteristics that distinguish it from competitors and showcase its quality in this positioning strategy. The winery communicates to consumers that their product has been recognised and honoured for its excellence in quality by emphasising that it has won awards.
The wine's positioning as a "prize-winning Canadian wine" implies that it has undergone thorough review and received recognition in the form of prizes or honours. This positioning foundation tries to appeal to consumers that respect quality and are willing to spend a higher price for a superior product.
The winery uses the concept of "Country of Origin" as an extra positioning base by identifying the wine with Canadian provenance.
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The Diversified Growth Co. Has three different divisions. Its low-risk division accounts for $5 million of its assets and has a beta of 0. 8. Its middle-risk division accounts for $10 million of its assets and has a beta of 1. 1, while its high-risk division has assets worth $15 million and a beta of 1. 8. Diversified’s overall firm beta is therefore equal to _____. (Do not round intermediate computations. )
Answers
The Diversified Growth Co. has three divisions with different risk levels and asset values. The low-risk division has $5 million in assets and a beta of 0.8, the middle-risk division has $10 million in assets and a beta of 1.1, and the high-risk division has $15 million in assets and a beta of 1.8. To determine the overall firm beta, we need to calculate the weighted average of the division betas based on their asset values.
To calculate the overall firm beta, we need to take into account the asset values and betas of each division. The formula to calculate the weighted average beta is as follows:
Overall Firm Beta = (Beta of Low-Risk Division x Asset Value of Low-Risk Division + Beta of Middle-Risk Division x Asset Value of Middle-Risk Division + Beta of High-Risk Division x Asset Value of High-Risk Division) / Total Asset Value
Using the given information, the calculation would be as follows:
Overall Firm Beta = (0.8 x $5 million + 1.1 x $10 million + 1.8 x $15 million) / ($5 million + $10 million + $15 million)
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Explain how James can change his farming habits to have a more-productive farm in the following scenario.
James has been losing money on his farm recently, so he has switched to a lower-quality fertilizer of human-made chemicals. As a result, his crops are not growing as well. He is finding it difficult to sell them, causing James to lose even more money.
Answers
Answer:
James should switch to a higher-quality fertilizer to ensure his crops grow well.
Explanation:
If he switches to a higher-quality fertilizer, his plants will grow better, and as a result they will sell better.
James can change his farming habits to have a more productive farm by switching to sustainable farming practices that prioritize soil health and natural fertilizers.
Explain how James can change his farming habits ?The use of chemical fertilizers can negatively impact the quality of the soil over time, leading to decreased crop yields and decreased profits.
To start, James could invest in improving the quality of his soil by rotating crops, practicing cover cropping, and incorporating organic matter such as compost into his fields. This will help to improve the health and nutrient content of the soil and lead to healthier crops.
Additionally, James could consider implementing sustainable pest management strategies, such as integrated pest management, to reduce his reliance on harmful chemicals. This will not only benefit the environment but also save James money on expensive pesticides.
Finally, James could explore alternative marketing strategies to sell his crops, such as farmers markets, community-supported agriculture programs, and direct-to-consumer sales. These methods may help James to reach a more interested and engaged audience who value sustainably grown produce.
Overall, by prioritizing soil health, reducing reliance on harmful chemicals, and exploring alternative marketing strategies, James can change his farming habits to have a more productive and profitable farm.
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