management statement not to exceed 100 words. 13-5. (Flotation costs and issue size) D. Butler Inc. needs to raise $14 million. Assuming that the market price of the firm’s stock is $95‚ and flotation costs are 10 percent of the market price‚ how many shares would have to be issued? What is the dollar size of the issue? Market price of the firms stock $95 Flotation cost 10 percent of market price Stock price is $95‚ so the flotation Costs are $9.50 (10% x $95) the firm receives $95 - 9.50 = $85
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the answer to the question is. A ball and bat cost $1.10. The bat costs $1 more than the ball. How much does the ball cost? If you’re like most people‚ your immediate answer was‚ "Ten cents." And you’d be wrong. Check it out. The bat costs $1 more than the ball. So if the ball costs ten cents‚ then the bat costs $1.10‚ and the total cost would be $1.20. That’s too much. We could try something lower. How about seven cents? Then the bat would cost $1.07‚ and the total would be $1.14. Closer
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The Cost of College THE PROBLEM: The cost to attend college is high‚ and has been rising for many years. The cost of college is too high‚ a lot of people can’t afford it‚ and unemployment rates are sky high. Why is the cost of college so much? The best answer would be our economy. Our economy has a great effect on the rising prices of everything‚ including college tuition. Another factor influencing the price of college is the demand for a higher education‚ for a well-paying job is more than ever
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THE COST AND SALES CONCEPT Cost is defined as a reduction in the value of an asset for the purpose of securing benefit or gain. Cost is defined in a hotel and restaurant as the expense to a hotel or restaurant for goods or services when the goods are consumed or the services are rendered. KINDS OF COSTS 1. Fixed costs – are those that are normally unaffected by changes in sales volume. They are said to have little direct relationship to the business volume because they do not change
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Cost of Capital Definition: cost of capital is the rate of return that a company must earn on its project investments to maintain its market value and attract funds. The cost of capital to a company is the minimum rate of return that is must earn on its investments in order to satisfy the various categories of investors‚ who have made investments in the form of shares ‚ debentures and loans. The cost of capital in operational terms refers to the discount rate that would be used in determining the
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a transaction cost is a cost incurred in making an economic exchange. A number of different kinds of transaction costs exist. Search and information costs are costs such as those incurred in determining that the required good is available on the market‚ who has the lowest price‚ etc. Bargaining costs are the costs required to come to an acceptable agreement with the other party to the transaction‚ drawing up an appropriate contract‚ etc.. Policing and enforcement costs are the costs of making sure
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Costs of Corrections in the United States Did you know that 23 states prison systems are operating at over 100% capacity? "The increases in drug imprisonment‚ the decrease in releases from prison‚ and the re-incarceration for technical parole violations are leading to significant overcrowding and contribute to the growing costs of prisons. Prisons are stretched beyond capacity‚ creating dangerous and unconstitutional conditions which often result in costly lawsuits. In 2006‚ 40 out of
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pre-determined cost structure to account for and control expenses. WaMu primarily realizes transaction costs‚ fixed costs‚ and variable costs. Because WaMu doesn’t provide free services per-say‚ the sunk costs of the structure are fairly minimal. Transaction costs constitute the next smallest portion of WaMu’s cost structure. WaMu is free of infrastructure based transaction costs like those that smaller retailers who use point of sale services might incur. The primary transaction costs are the commissions
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Costs and budgets The management of costs is a very important aspect of managing financial resources. If costs are not managed effectively‚ it can lead to profits being damaged and the business potentially unable today its expense. Keeping within a budget‚ increasing income in order to cope with change and making sure that working capital is available and money and set aside for emergencies is all part of the balancing exercise. Costs managed to budget McDonald’s budget was adverse as there
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Transactional Leaders‚ Transformational Leaders‚ and Emotional Intelligence The difference between transactional and transformational leaders lies in their process of motivating followers. Transactional leaders begin with established goals or directives of their company and motivate employees to pursue these directives by “clarifying role and task requirements” (Robbins‚ 2005: 367) through rewards or intervention if standards are not met. Basically‚ they employ a hands-off management style‚ but
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