When issuing new securities, which of the following decisions does the firm make by itself?
A. Deciding whether to go for a competitive bid or a negotiated deal with an investment banker
B. Deciding whether to go for a best-efforts or an underwritten issue
C. Determining the flotation costs
D. Deciding the offering price
E. Reevaluating the decisions about the size of the issue and the type of securities to be issued
Answer: A
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Which set of multiplicities correctly shows the relationship between the Cash Receipts table and the Sale table for an organization that allows customers to buy on credit and pay in multiple installments?
A. Cash Receipts (0..N) - Sale (1..1). B. Cash Receipts (1..1) - Sale (N..M). C. Cash Receipts (1..1) - Sale (1..1). D. Cash Receipts (1..N) - Sale (0..N).
Financial forecasts are required by lenders because they want to know how they will be paid back; investors will use the forecasts to value the company.
Answer the following statement true (T) or false (F)
Sally's Salon began operations on January 1 of the current year with an investment by Sally of $21,155 in exchange for common stock. Based on the following trial balance prepare an income statement, statement of retained earnings, and a balance sheet. There were no additional common stock issuances during the year. Sally's SalonTrial BalanceDecember 31Cash$ 6,500?Accounts receivable475?Beauty supplies2,500?Beauty shop equipment17,000?Accounts payable?$ 745Common Stock?21,155Dividends36,000?Revenue earned?72,000Beauty supplies expense3,425?Rent expense6,000?Wages expense22,000?Totals$93,900$93,900
What will be an ideal response?
If the CAPM explains deviations of the forward exchange rate from the expected future spot exchange rate, explain why one party involved in a forward contract would be willing to enter into a contract with an expected loss
What will be an ideal response?