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Semenov [28]
2 years ago
13

Which statement is correct? The underwriters pay the spread. Taxes are an indirect underwriting cost. Seasoned equity offerings

(SEOs) tend to be less costly than IPOs. Straight bonds are more costly to issue than convertible bonds. The total direct cost as a percentage of gross proceeds for an IPO tends to decrease as the size of the offer decreases.
Business
2 answers:
Marat540 [252]2 years ago
5 0

Answer:

The correct statement is Option No. 4 which is "straight bonds are more costly to issue than convertible bonds".

Explanation:

Option 4 "straight bonds are more costly to issue than convertible bonds" is true because generally convertible bonds offer low yield , so it is the lowest cost for issuers.

Svetach [21]2 years ago
4 0

Answer:

The statement that Straight bonds are more costly to issue than convertible bonds is true

Explanation:

Convertible bonds are bonds issued by a cooperation to a bondholder and this bond can be converted to shares in the company's stock when the bond holder decides to do that. these kind of bonds are easier and cheaper to issue when compared to straight bonds because of its lower interest rate.

Straight bonds have higher yields when compared to the yields generated from convertible bonds and this in turn makes it more costly to issue because the higher the yield a bond can offer the costlier the issuing of that bond in the financial market.

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A company reported net income of $836,000 for the current year. The year-end market price per common share was $12 and there wer
Nimfa-mama [501]

Answer:

Explanation:

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7 0
2 years ago
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If a store sold 25 pairs of socks, making a 25% profit of $150, how much did they charge for each pair?
djyliett [7]
25x-0.25=150
25x=149.75
x=5.99
5.99$ for each pair.
6 0
2 years ago
Assume that Jackson is a​ price-taker and the current wholesale market price is $7.30 per can of paint. What is the target total
Mumz [18]

Answer:

Jackson's target total cost of producing and selling 6 million cans of paint of $31,800,000 will enable it to reach stockholders' profit goals of $6 million.

The implication is that it should not allow its total costs (Production and other business expenses) to exceed $37,800,000.

This is because its sales revenue will be equal to $43,800,000 (6,000,000 * $7.30).

As such, Jackson can produce a can of paint for $5.30.  It can also incur an average business expense of $1.00 per can to maintain and reach its $6 million profit target.

Explanation:

Profit is the difference obtained after deducting all costs from the revenue.  There are some profit stages.  The first is the gross profit, which considers the sales revenue and the cost of goods sold.  The next profit stage is the operating profit, which subtracts the business running expenses from the gross profit.  There are also profits before and after interest and taxes.  The after tax profit is also called the net income or net profit.  If it is negative, then it is called the net loss.  It is from the net income that distributions are made to stockholders in the form of dividends while a part is retained in the business to increase its capital stock or stockholders' equity.

8 0
2 years ago
In reviewing your Summary Account Activity (#1), you notice FEES CHARGED of $69.45. This fee was assessed on your account for th
Norma-Jean [14]

Answer:

The correct option will be a. Late Payment Fee

Explanation:

A late payment fee also know as late charge is a charged to a borrower who misses paying at the stipulated payment date based on the agreement. For you to avoid paying that fees, ensure that you pay at least the minimum amount by the due date. So among all fees stated, all are charges made by the bank, but the late charge fee is not included until u failed to make payment on time, while others are fixed charges put in place by the banks.

6 0
2 years ago
Charlie Corporation is considering buying a new donut maker. This machine will replace an old donut maker that still has a usefu
mariarad [96]

Answer:

The incremental annual net cash inflows provided by the new machine would be $2,525.

Explanation:

In order to calculate the incremental annual net cash inflows provided by the new machine we would have to use the following formula:

incremental annual net cash inflows=saving in annual operating cost+contribution earned on additional sales

                                                        =( $4,125-$3,730)+(21,300×$0.10)

                                                        =$395+$2,130

                                                        =$2,525

Hence, The incremental annual net cash inflows provided by the new machine would be $2,525.

3 0
2 years ago
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