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Oduvanchick [21]
2 years ago
11

A company recently announced that it would be going public. The usual suspects, Morgan Stanley, JPMorgan Chase, and Goldman Sach

s will be the lead underwriters. The value of the company has been estimated to range from a low of $5billion to a high of $100billion, with $45billion being the most likely value. If there is a 20% chance that the price will be at the low end, a 10% chance that the price will be at the high end, and a 70% chance that the price will be in the middle, what value should the owner expect the company to price at?
Business
1 answer:
Deffense [45]2 years ago
8 0

Answer:

$42.5 billion

Explanation:

the expected value formula = ∑ (valueₙ x probabilityₙ)

expected value = (low value x probability of low value) + (most likely value x probability of most likely value) + (high value x probability of high value)

= ($5 billion x 20%) + ($45 billion x 70%) + ($100 billion x 10%) = $1 billion + $31.5 billion + $10 billion = $42.5 billion

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B, C and D are all examples of good etiquette
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Assume that demand for bottled water is relatively price elastic. An increase in supply of bottled water will result in which of
DENIUS [597]

Answer:

3 then 1

Explanation:

Supply is said to be increased when the quantity supplied expands but the price and quantity demanded remains unchanged. As quantity supplied has increased whereas the quantity demanded is what it was before this change, there is first a surplus of bottled water in the market. This surplus will have a downward pressure on price, reducing the quantity supplied a bit and, as the law of demand suggests ,the quantity demanded will increase. Given that the demand is relatively price elastic, the change in quantity demanded will be greater than the change in price. Therefore the revenue will increase.

3 0
2 years ago
The trees in a peach orchard were arranged in a square array with $N$ columns and $N$ rows. To enlarge the orchard by one row an
Sav [38]

Answer:

225 trees

Explanation:

The owner previously had N x N trees, or N² trees.

Now there are N² + 29 trees, where N² + 29 is a complete square.

So we need to find out what complete square number + 29 equals another complete square number.

To have a clue what number N is, we must divide 29 by 2 = 14.5

So is 14² + 29 a complete square?

196 + 29 = 225

√225 = 15

So the new orchard has 225 trees.

5 0
2 years ago
During its first year of operations, Silverman Company paid $11,625 for direct materials and $11,000 for production workers' wag
ella [17]

Answer:

$7,750

Explanation:

The computation of the net income for the first year is shown below:

but before that following calculations needed

The Cost of production is

= Direct material + Direct labor + Manufacturing overhead

= $11,625 + $11,000 + $10,000

= $32,625

The Unit product cost is

= $32,625 ÷  7,250 units

= $4.50 per unit

Now  

Cost of goods sold = Number of units sold × cost per unit

= 4,500 units × $4.50

= $20,250

And, finally

Net Income = Sales revenue - COGS - general, selling, and administrative expenses

= (4,500 units × $7) - $20,250 - $3,500

= $7,750

3 0
1 year ago
Which of the following correctly describes a repurchase agreement? The sale of a security with a commitment to repurchase the sa
Morgarella [4.7K]

Answer:

The correct answer is A: The sale of a security with a commitment to repurchase the same security at a specified future date and a designated price

Explanation:

A repurchase agreement (Repo) is a short term agreement between two parties in which one party sells the other party security (usually government securities) a<u>t a price with an agreement to repurchase the exact same security at a fixed time and price.</u> The maturity for a repurchase agreement can be from overnight to a year. The

Repurchase agreements are generally considered safe investments because the security in question functions as collateral, which is why most agreements involve U.S. Treasury bonds. The transaction allows the dealer to raise short term capital. It is a short term money market instrument in which two parties agree to buy or sell a security at a future date.

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2 years ago
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