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Oduvanchick [21]
1 year 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]1 year 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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One major benefit of using the Bank Feeds feature in QuickBooks Online is that as you _________________ or __________________ tr
Alex73 [517]

Answer:

1.  Exclude

2.  Add

3.  Reconciled

Explanation:

QuickBooks Online supports Bank feeds features, which in turn allows a user to perform ADDITION or EXCLUSION of transactions online, which results in such transaction are marked RECONCILED.

Hence, one of the major benefits of using the Bank Feeds feature in QuickBooks Online is that as you EXCLUDE or ADD transactions in QuickBooks Online from the downloaded transactions from the bank, they are marked RECONCILED. This makes the end-of-period bank reconciliation more efficient.

8 0
2 years ago
A salesperson is offering promissory notes for a company selling coffee at drive-through kiosks. The notes pay a 13% interest ra
OverLord2011 [107]

Answer:

Legitimate promissory notes are marketed to sophisticated, corporate investors that have the ability to thoroughly research the company issuing the notes and determine whether the issuer will be able to repay principal and interest.   There have been many instances of "promissory note fraud" where unlicensed individuals push bogus promissory notes that are sold as investments that offer above-market fixed interest rates and safeguarding of principal - and most of there are frauds.  This is a major concern to state regulators.

To offer a promissory note, both the salesperson and the note must be registered in the state.  Only promisory notes that have maturities of 9 months or less, that are investment grade, and are sold in minimum increments of $50,000 are exempt from registration.  

Finally, the tell-tale sign of fraud are:

Statements that tho notes are "guaranteed" or insured, especially by bogus foreign entities.

Promises of above-market rates fo return

Statements that the notes are "risk"free"

The labeling of a star-up company´s notes as prime

Offers of promissory notes from a stanger who does not know the costumer financial situation

4 0
2 years ago
Suppose that end-of-term frustrations have produced this e-mail message to Professor Anne Brewer from a student who believes he
Aleks04 [339]

A student who have wrongly been graded is writing an e mail to his professor in order to reconsider his grade on the bsis of the fact thet he has appeared a question in the term exam using the optimal cost method and the professor have assured the students that he will be giving 6 points extra to the student who will ans the question on the basis of the optimal cost method

<u>Explanation:</u>

End-of-term frustrations have produced this e-mail message to Professor Anne Brewer from a student who believes he should have received a B in his accounting class. If this message were recast into three or four clear sentences, the teacher might be more receptive to the student’s argument.

The e-mail message to Prof Anne Brewer can be rewritten as  

Sir

I think you have mistakenly awarded me C in the term examination conducted recently.As far as i can recall you mentioned in the class that the students who will answer  question number three using the optimal cost method will get 6 extra marks .I think you have forgotten to consider the same while grading me.Therefore i request you to reconsider my grade on the above mentioned basis.

Regards

6 0
2 years ago
The following are data for an economy in billions of dollars: Net rental income 141 Depreciation 1,241 Compensation of employees
Brilliant_brown [7]

Answer:

GDP= 9,872

Explanation:

The Expenditure Approach is a method of measuring GDP by calculating all spending throughout the economy including consumer consumption, investing, government spending, and net exports. This method calculates what a country produces, assuming that the finished goods and services of a country equals the amount spent in the country for that period.

The formula is:

GDP=C+I+G+/-NX

GDP: Gross Domestic Product

(C) consumer spending – this is the amount that all consumers spend on goods and services for personal use.

(I) investment – this is the amount that businesses or owners spend to invest in new equipment or expansions.

(G) government spending – this includes spending on new infrastructure like bridges and roads.

(NX) net exports – this includes spending on a country’s exports minus its spending on imports.

GDP= 6,728+1,767 +1,741+(1,102-1,466)

GDP= 9,872

7 0
2 years ago
SCI just paid a dividend (D₀) of $1.92 per share, and its annual dividend is expected to grow at a constant rate (g) of 4.00% pe
Readme [11.4K]

Answer:

intrinsic value of SCI’s shares is $33.28 per share

Explanation:

given data

dividend (D₀) = $1.92 per share

constant rate (g) = 4.00% per year

required return (rs ) = 10.00%

to find out

intrinsic value of SCI’s shares

solution

we know that intrinsic value is here express as

intrinsic value = current dividend × ( 1+ growth rate ) ÷ ( required rate - growth rate )    .............................1

put here value we get

intrinsic value = \frac{1.92*(1+0.04)}{0.10-0.04}

intrinsic value = 33.28

so intrinsic value of SCI’s shares is $33.28 per share

3 0
2 years ago
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