Question Completion:
Milling Department Materials Conversion Total Cost of beginning work in process inventory $ 10,000 $ 15,000 $ 25,000 Costs added during the period 291,600 385,000 676,600 Total cost $ 301,600 $ 400,000 $ 701,600
Answer:
Milling Department
The total cost assigned to the units completed and transferred out is:
= $643,080
Explanation:
a) Data and Calculations:
Milling Department
Cost of production:
Materials Conversion Total Cost
Beginning work in process inventory $ 10,000 $ 15,000 $ 25,000
Costs added during the period 291,600 385,000 676,600
Total cost $ 301,600 $ 400,000 $ 701,600
Equivalent units of production 5,200 5,000
Cost per equivalent unit $58 $80
Cost Assignment:
Units completed and transferred out:
Materials = $270,280 (4,660 * $58)
Conversion 372,800 *4,660 * $80)
Total costs $643,080
Therefore, the costs assigned to ending work in process = $ 58,520 ($701,600 - 643,080)
Carter Company has $800,000 of 6% preferred stock and $1,200,000 of common stock outstanding, each having a par value of $10 per share. No dividends have been paid or declared during the last two years, 2020 and 2019. As of December 31, 2021, the Board of Directors has decided to distribute $420,000 in cash dividends and needs help in determining the allocation between Preferred Stockholders and Common Stockholders. Assuming the preferred stock is noncumulative and nonparticipating, how much of the $420,000 will be allocated to Common Stockholders
Answer and Explanation:
The computation of the allocation done between the preferred and common stockholder is shown below
Given that
Total dividend for current year = $420,000
Less: preference dividend -$40,000 ($800,000 × 5%)
Balance for common stock $380,000
The $40,000 should be first distributed to the preference stockholder and the remaining would be allocated to the common stockholder
Alice wants to have a portrait painted for her family which career pathway would be the best for Alice to contact
f the U.S. government were to ban imports of Canadian beef for reasons unrelated to health concerns, what would be the effect on the price of beef in the United States? How would the typical American’s diet change? What if the ban suggested to consumers that there might be health risks associated with beef?(Hint: Again, think about which curve(s) will shift and what would be the effect on price and quantities.)
Answer:
Following are the steps to the given question:
Explanation:
In step 1:
When the Us administration prohibits beef imports through Canada for health reasons, therefore the import and export of beef would affect beef availability, thereby dropping the cost of beef on an Us market, which will also raise.
In step 2:
Its impact on beef consumption would be less required mostly on the U.S. market as well as the degree for effective change depended on relative prices of beef consumption even Among consumers. If this is costly, then citizens may replace this with a lower-price substitute.
In step 3:
In Canada, the beef manufacturers have acquired beef stocks and therefore are selling in the Canadian market at a low price. If beef-related health effects are listed among explanations because of its ban this will deter consumers from eating very little on excess supply but will reduce demand by as much as previously.
You've collected the following information about a company: Assets Liabilities and Equity Cash 13,000 Accounts payable 16,000 Marketable securities 2,000 Notes payable 6,000 Accounts receivable 4,000 Current liabilities Inventory 32,000 Long-term debt 95,000 Current assets Total liabilities Machines 34,000 Paid-in capital 20,000 Real estate 80,000 Retained earnings Fixed assets Equity Total assets Total liab. & equity Attempt 1/10 for 10 pts. Part 1 What are total assets? 165000 Correct ✓ Total assets are the sum of current and fixed assets. Assets Liabilities and Equity Cash 13,000 Accounts payable 16,000 Marketable securities 2,000 Notes payable 6,000 Accounts receivable 4,000 Current liabilities Inventory 32,000 Long-term debt 95,000 Current assets 51,000 Total liabilities Machines 34,000 Paid-in capital 20,000 Real estate 80,000 Retained earnings Fixed assets 114,000 Equity Total assets 165,000 Total liab. & equity Total assets = Current assets + Fixed assets = 51,000 + 114,000 = 165,000
Answer:
The answer is "$228,000"
Explanation:
Formula:
[tex]\text{Total Assets = Current Assets + Fixed Assets}[/tex]
[tex]= [\$ 13,000 + \$ 2,000 + \$ 4,000 + \$ 95,000] + [\$ 34,000 + \$ 80,000]\\\\= [\$ 114,000] + [\$ 114,000]\\\\= \$ 228,000[/tex]
volume_upclosed_captiondescriptionfullscreen Leaders at Cold Stone Creamery say they launched stores in Japan because Japanese consumers have Western brand awareness that enables them to comprehend the American ice cream experience. The leaders are making a case that:
Answer:
d.Japanese consumers have schemas and prototypes against which they can positively evaluate and comprehend Cold Stone Creamery.
Explanation:
Japanese consumers have schemas and prototypes against which they can positively evaluate and comprehend Cold Stone Creamery.The prototype is regarded as mental frameworks which is been utilized in assignment of things into categories based on quality.
Your farm encompasses 900 acres, and you are planning to grow soybeans, corn, and wheat in the coming planting season. Fertilizer costs per acre are: $5 for soybeans, $2 for corn, and $1 for wheat. You estimate that each acre of soybeans will require an average of 5 hours of labor per week, while tending to corn and wheat will each require an average of 2 hours per week. Based on past yields and current market prices, you estimate a profit of $9,000 for each acre of soybeans, $6,000 for each acre of corn, and $3,000 for each acre of wheat. You can afford to spend no more than $5,400 on fertilizer, and your farm laborers can supply 5,400 hours per week. How many acres of each crop should you plant to maximize total profits
Answer:
Using solver, the optimal solution = 900 acres of soybean resulting in $8,100,000 profit
Explanation:
you need to maximize 9000S + 6000C + 3000W
where:
S = acres of soybean
C = acres of corn
W = acres of wheat
constraints:
S + C + W ≤ 900
5S + 2C + 1W ≤ 5400
5S + 2C + 2W ≤ 5400
S, C, W ≥ 0
S, C, W are whole numbers
Using solver, the optimal solution = 900 acres of soybean resulting in $8,100,000 profit
The broadcast news test advises corporate executives to _______. Multiple Choice Make certain that the things they do that are questionable do not end up on the front page of the newspaper or in the media to preserve the appearance of good ethics and meet the bottom line goal of profits Test all corporate policy by the standards of good publicity; that is, only do those things that will increase corporate bottom line profits by leading to good publicity Only do those things in secret that you would not mind becoming public, that is, showing up in the broadcast news All of the answer choices are correct
Answer: Make certain that the things they do that are questionable do not end up on the front page of the newspaper or in the media to preserve the appearance of good ethics and meet the bottom line goal of profits
Explanation:
The broadcast news test is simply defined as the approach taken in a company to ensure that it's employees are acting in an ethical manner.
The broadcast news test advises corporate executives to make certain that the things they do that are questionable do not end up on the front page of the newspaper or in the media to preserve the appearance of good ethics and meet the bottom line goal of profits.
Beachballs, Inc., expects abnormally high earnings for the next three years due to the forecast of unusually hot summers. After the 3-year period, their growth will level off to its normal rate of 6%. Dividends and earnings are expected to grow at 20% for years 1 and 2 and 15% in year 3. The last dividend paid was $1.00. If an investor requires a 10% return on Beachballs, the price she is willing to pay for the stock is closest to:
Answer: $36.50
Explanation:
The price she will be willing to be paid according to the Dividend Discount model is calculated by finding the present value of the future dividends and the terminal value.
Dividend year 1 = 1 * (1 + 20%) = $1.20
Dividend year 2 = 1.20 * (1 + 20%) = $1.44
Dividend year 3 = 1.44 * (1 + 15%) = $1.656
Terminal value = Dividend in year 4 / (required return - growth rate)
= (1.656 * (1 + 6%)) / ( 10% - 6%)
= $43.884
[tex]Price = \frac{1.2}{(1 + 0.10)} + \frac{1.44}{(1 + 0.10)^{2} } + \frac{1.656}{(1 + 0.10)^{3} } + \frac{43.884}{(1 + 0.10)^{3} }\\\\= 36.4959\\\\= 36.50[/tex]
= $36.50
g MM Proposition II with taxes: Group of answer choices reveals how utilizing the tax shield on debt causes an increase in the value of a firm. reaches the final conclusion that the capital structure decision is irrelevant to the value of a firm. supports the argument that the cost of equity decreases as the debt-equity ratio increases.
Answer:
reveals how utilizing the tax shield on debt causes an increase in the value of a firm.
Explanation:
According to the MM Proposition II with taxes, the value of a levered firm = Vu + tD
Where :
Vu = value of unlevered firm
tD = debt tax shield
In the presence of taxes, the value of a levered company is greater than that of the same company without debt with the same operating income.
Also, the WACC of a company with debt must be lower than that of an all equity company
Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $86,722. The Focus Company initially offered to buy the land for $111,289. The companies settled on a purchase price of $212,000. On the same day, another piece of land on the same block sold for $103,641. Under the cost principle, at what amount should the land be recorded in the accounting records of Focus Company
Answer: $212,000
Explanation:
Under the cost principle, the amount that the land should be recorded in the accounting records of Focus Company would be $212,000.
It should be noted that under the cost principle, any property that can be considered to be an asset would have to measured at its cost.
Since the companies settled on a purchase price of $212,000, that'll be the amount that will be recorded.
A deposit of $100,000 is made to an investment account today. At the end of each of the next four years, $10,000 must be paid out to a beneficiary, and the account liquidated at the end of year four. If the liquidation value is $100,000, the account has earned an annual internal rate of return of ___________%. (percent, rounded three places after the decimal)
Answer:
14.06%
Explanation:
Assume their is a cash out flow today of $100000, and next four year annual cash inflow of 10000 and 120000 at the end of year 4.
We can use IRR formula to find the interest rate.
year cashflow
0 -100000
1 10000
2 10000
3 10000
4 130000
IRR 14.06%
The calculation has been done on excel sheet
Using the information presented above, determine the following: Determine EPS for Net Income ('x2) $_____________________ (Round your answer to the nearest whole cent. Example: if you determine EPS from Net Income to be $6.94724, round your answer to 6.95. If you determine EPS from Net Income to be $6.94321, round your answer to 6.94. Do not use dollar signs in recording your answer.)
Question Completion:
Income Before Taxes (from ongoing operations) $2,470,000
Income Tax Rate (’x2) 30%
5% Preferred Stock ($100 Par, 10,000 shares issued)
Common Stock ($1 par, 600,000 shares issued, 500,000 outstanding)
Answer:
The company's EPS is:
= 3.46
Explanation:
a) Data and Calculations:
Income Before Taxes (from ongoing operations) (’x2)= $2,470,000
Income Tax Rate (’x2) = (30% * $2,470,000) = $741,000
Net Income after taxes = $1,729,000
5% Preferred Stock ($100 Par, 10,000 shares issued) = $1,000,000
Common Stock ($1 par, 600,000 shares issued, 500,000 outstanding)
Outstanding common stock = $500,000
EPS (Earnings per share) = Net income after taxes/No. of outstanding shares
= $1,729,000/500,000
= $3.458
b) The earnings per share (EPS) equals Company A's net profit after taxes divided by the number of its outstanding common stock shares. Using the EPS, it indicates how much money Company A makes for each share of its stock. As a widely used metric, a potential stockholder of Company A can use it to estimate Company A's value when combined with the price per share.
The €/$ spot exchange rate is €1.50/$ and the 120 day forward exchange rate is €1.45/$. The forward premium (discount) is Group of answer choices the dollar is trading at an 8% premium to the euro for delivery in 120 days. the dollar is trading at a 5% premium to the Swiss franc for delivery in 120 days. the dollar is trading at a 10% discount to the euro for delivery in 120 days. the dollar is trading at a 5% discount to the euro for delivery in 120 days.
Answer:
The forward premium (discount) is:
the dollar is trading at a 10% discount to the euro for delivery in 120 days.
Explanation:
a) Data and Calculations:
Spot exchange rate = €1.50/$
120 day forward exchange rate = €1.45/$
When the forward rate is less than the spot rate, the means that the currency is trading at a discount in the forward market.
The formula for calculating the forward premium or discount is:
= (Forward Rate Minus Spot Rate)/Forward Rate * 360/120
= (€1.45 - €1.50)/€1.45 * 360/120
= €-0.05/€1.45 * 3
= €-0.03448 * 3 = -10.3%
b) The forward premium occurs when the forward exchange rate is higher than the spot exchange rate. The forward discount occurs when the forward exchange rate is lower than the spot exchange rate. Forward premium or discount is normally expressed as the annualized percentage of the difference, using 360 days.
What does greater capital mobility mean? A. Governments impose restricted trade policies. B. Investment money flows freely around the world. C. Foreign investment is tightly controlled. D. Companies can only profit by investing, not producing.
Answer:
B. Investment money flows freely around the world
Explanation:
Capital mobility refers to the movement of investment funds from one country to another. Greater capital mobility implies free movement of capital across borders.
Greater capital mobility is only possible where there are no restrictions on capital movements. Restrictions of capital mobility include taxes, transaction costs, and government regulations.
Answer:
b
Explanation:
Jim and Joan owned a farm which produced fruits and vegetables for sale. The farm was located in a heavily populated area. Every year, hundreds of customers came to buy produce from them at the farm. One day, customers were surprised to see that the farm stand was gone and that Jim and Joan had sold the property for a much higher price than farm land would normally cost. Which principle of value did the appraiser use in determining the value of the property?
Answer:
Highest and best use
Explanation:
The highest and best use principle explains the probable as well as reasonable and legal use of lands that are vacant as well as improved property. This property or land must be financially feasible and be supported appropriately so that the result gives highest value.
Reeves Co. filed suit against Higgins, Inc., seeking damages for copyright violations. Higgins' legal counsel believes it is probable that Higgins will settle the lawsuit for an estimated amount in the range of $170,000 to $270,000, with all amounts in the range considered equally likely. How should Higgins report this litigation
Answer:
As a liability for the minimum amount of $170,000 along with disclosure of the range
Explanation:
Based on the information given Higgins should report this litigation as a LIABILITY for the amount of $170,000 along with disclosure of the range reason been that we were told he will settle the lawsuit with an amount in the range of $170,000 to $270,000 in which all the amounts in the range are considered to be both equally likely which therefore means that he will have to record the LIABILITY at the amount of $170,000 which is appear to be the minimum amount in the range.
Therefore Higgins should report this litigation As a liability for the minimum amount of $170,000 along with disclosure of the range.
Flax Corp. uses the direct method to prepare its Statement of Cash Flows. Flax's trial balances at December 31, 20X4 and 20X3, are as follows: December 31 20X4 20X3 Debits: 33,000 30,000 Cash $35,000 $32,000 Accounts receivable 33,000 30,000 Inventory 31,000 47,000 Property, plant, & equipment 100,000 95,000 Unamortized bond discount 4,500 5,000 Cost of goods sold 250,000 380,000 Selling expenses 141,500 172,000 General & administrative expenses 137,000 151,300 Interest expense 4,300 2,600 Income tax expense 20,400 61,200 $756,700 $976,100 Credits: Allowance for uncollectible accounts $1,300 $1,100 Accumulated depreciation 16,500 15,000 Trade accounts payable 25,000 17,500 Income taxes payable 21,000 27,100 Deferred income taxes 5,300 4,600 8% callable bonds payable 45,000 20,000 Common stock 50,000 40,000 Additional paid-in capital 9,100 7,500 Retained earnings 44,700 64,600 Sales 538,800 778,700 $756,700 $976,100 Flax purchased $5,000 in equipment during 20X4. Flax allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. What amounts should Flax report in its Statement of Cash Flows for the year ended December 31, 20X4, for cash paid for goods to be sold?
Answer:
the cash paid for goods to be sold is $226,500
Explanation:
The computation of the cash paid for goods to be sold is shown below:
= Cost of goods sold + Opening trade account payable - closing trade account payable + closing inventory - beginning inventory
= $250,000 + $17,500 - $25,000 + $31,000 - $47,000
= $226,500
Hence, the cash paid for goods to be sold is $226,500
Columbia Sportswear makes nylon activewear. Its marketing manager set a goal to increase sales 12 percent over the next three years through the introduction of a new line of comfortable, lightweight clothing for people who fish. The marketing manager is engaged in ________.
Answer:
a) functional planning
Explanation:
The functional planning is the planning that need to be done for each type of department so that the goals and the objectives of the company could be accomplish in a efficient and effective manner
Since in the question it is mentioned that the marketing manager have set a goal to rise the sales by 12% over the next three years so this represent that the manager is engaged in the functional planning
A couple of generations ago, a relative of John wanted to share her wealth with family members and decided to open a special bank account. The purpose of such financial instrument was to pay out an annuity forever, which would be shared among all family members. Given that the initial deposit was 401,935 dollars and the prevailing interest rate at that time was 5 %, compounded annually, find the value of the annuity this family collects every year. (note: round your answer to the nearest cent, and do not include spaces, currency signs, plus or minus signs, or commas)
Answer: 20097
Explanation:
Based on the information provided, the value of the annuity this family collects every year will be calculated as:
Present value of annuity will be:
= Annual cash flow × Interest rate
= 401,935 × 5%
= 401935 × 5/100
= 401935 × 0.05
= 20096.75
= 20097
The annuity collected every year will be 20097.
Your manager is concerned that costs are being misappropriated due to large balances in ending work in process inventories while currently using the FIFO Method for accounting for beginning work in process inventories. Using examples from your own experience or from the book, explain to the manager which of the methods of process costing you believe should be used and why.
Answer:
The company should use the weighted average method of process costing.
Explanation:
FIFO and Weighted average cost method are the two methods of Process costing. The company is already using the FIFO method for accounting of inventory under which cost are misappropriated into closing WIP.
To solve such issue, the company can use the weighted average method under which cost is calculated by weighted average and then evenly distributed to the unit transferred to other department and the ending work in process.
Example: Suppose company purchased goods lying stock 20000 units at $5 each. Weighted average cost calculated per unit is $3 per unit. Calculate Closing work in process
==> FIFO = 20000*5 = $100,000
==> Weighted average cost = 20000 * 3 = $60,000
11. King Arthur is going into battle and he needs to decide how many more swords and helmets he should buy. The tables show the total benefit for swords and helmets. Assume each sword costs two dollars and each helmet costs one dollar. If King Arthur only has $10, how many swords and helmets should he buy to maximize his total benefit
Revenue from a contract with a customer cannot be recognized until a contract exists. is recognized even if the contract is still wholly unperformed. can be recognized even when a contract is still pending. is recognized when the customer receives the rights to receive consideration
Answer:
cannot occur until a contract exists.
Explanation:
Revenue according to GAAP Definition is simply said to be increase or decrease of asset and/or combination of both by production or goods delivery, or offering services that are all about a major running operations. Revenue Recognition also according to GAAP is the Revenue is known(recognize) when it has been realized and earned.
SEC Criteria to Recognize Revenue are the evidence of an arrangement exists, Goods Delivered or Services Rendered and others.
Revenue from a contract with a customer cannot be recognized until a contract exists which form the beginning of the contract.
Suppose the price elasticity of demand for cigarettes is -0.8 and that the government can essentially set the price of cigarettes by altering the tax rate. If the government wishes to reduce the quantity of cigarettes demanded by 15 percent, how much must it raise the price of cigarettes? The government, to achieve its goal, must raise the price of cigarettes by nothing percent. (Enter your response rounded to two decimal places.)
Answer: 18.75%
Explanation:
Price elasticity of demand shows the change in quantity demanded as a result of a change in price.
If the price elasticity is negative, it means that quantity demanded and price move in opposing directions. If prices increase, quantity demanded decreases and vice versa.
Price elasticity of demand = Change in quantity demanded / Change in price
-0.8 = - 15% / x
-0.8x = -15%
x = -15% / -0.8
= 18.75%
How important are communication skills in project management? 2. Was Herb the right person to be assigned as the project manager? 3. There were communications issues with Alice, Bob, Betty, and Frank. For each communication issue, where was the breakdown in communications: encoding, decoding, feedback, and so on?
Answer:
1)
Communication plays a very important role in any of the project.
1.Good communication helps the project to complete in hassle free way.
2.If communication is clear, the project complete its deadline without any failure of delivering .
3.Proper communication also reduces the redundancy of data and ensures effective working of project.
If the present case study is considered, there is a communication gap between the team members because of which Herb faced a lot of problems.
If the communication is clear, then it surely helped Herb to do things better.
Hence communication skills are very important part in any project management.
2)
Yes, herb is the right person to be assigned as the project manager.
Because he has experience of 8 years due to which his company has believed in him. Herb is considered a subject matter expert and a Ph.D holder with knowledge of working in both R&D and manufacturing projects earlier. His experience and knowledge would definitely be an asset to the project, if the communication gets better. This will also help the company to enhance their business.
3)
Yes, there were communication issues with all the four team members.
In the case of Alice, there is a encoded message that she expects that Herb would be writing a recommendation mail for her promotion.
In case of Bob, there is a lack of feedback as Herb didn’t get the required follow up from the technicians.
In case of Betty, there is a problem in decoding Herb’s message of just determining the cost of procurement because of which Betty has actually procured the materials.
The case of Franck , there is feedback issue and that could been better in procuring the materials which did not actually happen.
On September 30, 2021, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2022, and the program was available for release on April 30, 2022. Development costs were incurred as follows: September 30 through December 31, 2021 $ 2,310,000 January 1 through February 28, 2022 910,000 March 1 through April 30, 2022 510,000 Athens expects a useful life of five years for the software and total revenues of $7,000,000 during that time. During 2022, revenue of $1,050,000 was recognized. Required: Prepare a journal entry in each year to record development costs for 2021 and 2022.
Answer and Explanation:
The journal entries are shown below:
For 2021
Research and development expense $2,310,000
To Cash $2,310,000
(Being expenses incurred on R&D is recorded)
Here expenses are debited as it increased the expense and credited the cash as it decreased the assets
For 2022
Research and development expense $910,000
Software development expense $510,000
To Cash $1,420,000
(Being expenses incurred is recorded)
Here expenses are debited as it increased the expense and credited the cash as it decreased the assets
International monetary analysis focuses on Group of answer choices the international trade side of the international economy. the real side of the international economy. the issues of international cooperation between Central Banks. the monetary side of the international economy, such as currency exchange. the international investment side of the international economy.
Answer:
the monetary side of the international economy, such as currency exchange.
Explanation:
Globalization can be defined as the strategic process which involves the integration of various markets across the world to form a large global marketplace. Basically, globalization makes it possible for various organizations to produce goods and services that is used by consumers across the world.
An exchange rate can be defined as a number used to represent the value of one country's currency in comparison to another.
International monetary analysis focuses on the monetary side of the international economy, such as currency exchange.
Rediger Inc., a manufacturing Corporation, has provided the following data for the month of June. The balance in the Work in Process inventory account was $35,000 at the beginning of the month and $23,500 at the end of the month. During the month, the Corporation incurred direct materials cost of $57,600 and direct labor cost of $31,900. The actual manufacturing overhead cost incurred was $54,300. The manufacturing overhead cost applied to Work in Process was $53,600. The cost of goods manufactured for June was:
Answer:
the cost of goods manufactured is $154,600
Explanation:
The computation of the cost of goods manufactured is shown below:
= Opening work in process inventory + direct material cost + direct labor cost + manufacturing overhead cost applied - ending work in process inventory
= $35,000 + $57,600 + $31,900 + $53,600 - $23,500
= $154,600
Hence, the cost of goods manufactured is $154,600
A trial balance has total debits of $36,000 and total credits of $48,500. Which one of the following errors would create this imbalance?
A.) A $6,250 debit to utilities expense in a journal entry was incorrectly posted to the ledger as a $6,250 credit, leaving the utilities expense account with a $7,000 debit balance.
B.) A $12,500 debit to salaries expense in a journal entry was incorrectly posted to the ledger as a $12,500 credit, leaving the salaries expense account with a $2,350 debit balance.
C.) A $6,250 credit to consulting fees earned (revenues) in a journal entry was incorrectly posted to the ledger as a $6,250 debit, leaving the consulting fees earned account with a $14,300 credit balance.
D.) A $6,250 debit posting to accounts receivable was posted mistakenly to land.
E.) A $12,500 debit posting to equipment was posted mistakenly to cash.
F.) An entry debiting cash and crediting accounts payable for $12,500 was mistakenly not posted.
Please answer which one is it. Thank you!
Answer:
$2,250 debit to Rent Expense in a journal entry is incorrectly posted to the ledger as a $2,250 credit, leaving the Rent Expense account with a $3,000 debit balance
Explanation:
Answer:
is the repondet the
F.) An entry debiting cash and crediting accounts payable for $12,500 was mistakenly not posted
A downside of social media is that:
Answer:
People tend to talk to other people they don't know, which could cause serious problems
Explanation:
Answer:
That there are big hacker that can steal your info and also that people can know everything about you in just one video or on picture. It just pure scary
Explanation:
Your Welcome (; (:
East Bay Semiconductor, Inc., currently a small private company, plans to go public via an initial public offering (IPO) and will issue 10 million shares of stock. It is hoping to sell the shares for an offer price of $25. It hires an investment bank, which suggests that the offer price for the stock should be $20 per share to ensure that all the shares can be easily sold. 5. What is the advantage of following the advice of the investment bankers? What is the disadvantage? Is the investment bank’s incentive to sell the shares aligned with the incentives of East Bay Semi? What trade-off does East Bay Semi face in this decision regarding the issue price? Briefly explain
Answer:
What is the advantage of following the advice of the investment bankers? What is the disadvantage?
Whenever a small company decides to carry out an IPO, the risk of not selling all the stocks exists and it has happened many times before. East Bay's executives probably believe that their company is the next Apple or Microsoft, or any other super huge high tech corporation. But the reality is that it is not. If the IPO goes on and not all the stocks are sold, the stock price will plummet by the end of the trading day.
On the other hand, maybe East Bay in a couple of years will be worth more than Tesla, Amazon or any other top corporation, and pricing their stocks too low will only result in losing money.
Actually, no two analysts in the world ever agree on the exact intrinsic price of stocks. Even though math should be the same and they all use the same formulas, several factors are considered differently.