What is the difference between a competitive bid and a negotiateddeal?

Q: What is the IRR of this offer?

A: Capital budgeting methods are the used for finding the profitability of capital projects. It is a…

Q: How do convertibles reduce agency costs?

A: Agency costs: An agency cost is a kind of inside business cost which originates from the movements…

Q: What is an IPO?

A: Initial public offering refers to the offering which is done first time by any private corporation…

Q: What is partial public offering?

A: Public offering is sale of shares to the general public. The company issue shares and raise through…

Q: How do  Negotiable Instruments work?

A: A negotiable instrument is a signed document that offers a specific person or the assignee a…

Q: Explain the issues involved in setting the bid price.

A: Bid price: The price that is offered for a commodity, service, and product is called bid price. It…

Q: What are some factors that acquiring firms consider when they set a bid price?

A: Three main factors are whether the purchasers observe the product offers worth, how many purchasers…

Q: What is “implied volatility”, how is it calculated, and how can it be used?

A: Implied volatility (IV) is a forecast of how much a security's price will fluctuate over a certain…

Q: Describe the incremental Analysis for Comparing Mutually Exclusive Alternatives?

A: The question is based on the concept of Incremental cash flow analysis of mutually exclusive…

Q: Share option compensation is what accounting subject?

A: Stock-based compensation: It is a way of paying employees, executives, and directors of a company…

Q: What would be the TIE ratio under its relaxed policy?

A: Lets understand the basics. Times earned interest ratio indicates how many times company EBIT covers…

Q: Understand how variable consideration and other aspects of contracts affect the calculation and…

A: Variable consideration:  It refers to the amount of revenue that is to be recognized as per the…

Q: Explain the concept of triangular arbitrage and the scenario necessary for it to be plausible

A: Triangular arbitrage is a consequence when the currency exchange rate does not match up with other…

Q: What is an arbitrage opportunity

A: Arbitraging involves simultaneously buying and selling of an asset in spot or future to earn a…

Q: What is interstate public offering?

A: Companies want money to expand the business and there are limited resources as a private company, so…

Q: What is the difference between firm-commitment and stand-by underwriting? What is underwriting…

A: Underwriters play a very critical role in ensuring the fresh issue of securities of the company are…

Q: what is IPO underpricing? How do asymmetric information model explain this phenomena?Briefly explain

A: When an IPO( initial public offering )  is set at a price lower than its real market value. So, when…

Q: what does the voting rights of the Exchange mean?

A: Shareholder voting indicates the privilege given to shareholders to take part in the decision making…

Q: What is competitive bidding?

A: Competitive Bidding: It involves a proposal by one firm aiming to offer its services or bid for the…

Q: Explain the following terms, Bid Rate and Ask rate

A: Bid and Ask rates are two common rates used in financial markets especially in the foreign exchange…

Q: What is the fair value option?

A: Fair value: Fair value is the price at which, both seller and buyer agree to exchange the asset. So,…

Q: Use the AE Method to Compare Mutually Exclusive Alternatives?

A: In capital budgeting, AE (equivalent annual cost) method is the total cost of maintaining and…

Q: How can we use the AE Method to Compare Mutually Exclusive Alternatives?

A: The AE method is used to compare mutually exclusive alternative as explained below,

Q: Describe the procedure used for Incremental Analysis for Comparing Mutually Exclusive Alternatives?

A: Mutually exclusive alternatives are those alternatives in which only one alternative can be selected…

Q: What are the limitations of TCE approach to the make or buy decision?

A: TCE Approach is Transaction Cost Economics Theory. It means an activity should be performed within…

Q: What is a bargain purchase option? How does it differ from other purchase options?

A: Purchase option: Purchase option is provision of certain lease contracts which provides the lessee…

Q: What is the difference between fair value and market fair value?

A: Fair value refers to the value that represents the worth of a particular item. It is the value that…

Q: Why does IPO underpricing exist?

A: IPO - IPO stands for Initial Public Offer. When company want to list their shares on the stock…

Q: Describe the statement Cost breakdown of lump -sum Bids?

A: Statement of cost breakdown is prepared to determine the individual elements that include the total…

Q: How does a class action change the stakes for the parties?

A: The class action is among the most impressive legitimate devices accessible in the U.S. It empowers…

Q: What is positional bargaining

A: Positional bargaining: Positional bargaining may be a negotiation tact including locking onto a set…

Q: Explain the fair value option.

A: Fair Value Option: It is a process of measuring the financial assets and liabilities using the fair…

Q: what are the limitations of the Comparative advantage theory?

A: Solution- Comparative Advantage Theory-          The term comparative advantage is most frequently…

Q: What is an Option Contract?

A: An Option contract is an agreement between two parties to buy or sell an underlying asset, at a…

Q: Competitive and Negotiated Offers - What are the comparative advantages of a competitive offer and a…

A: A competitive used to offer the situation, which use to exist the at the time of the department for…

Q: determine

A: Most truthful price  measurements utilize one among3 approaches to determinant truthful value:…

Q: Explain the importance of the excess-capacity issue in setting a competitive bid price.

A:

Q: Describe the Incremental-Investment Analysis for Comparing Mutually Exclusive Alternatives?

A: Introduction: Firms often come into numerous projects and they just want to select one. Thus, all…

Q: What is an unbalanced bid? Why might one be used?

A: Bidding involves an offering by an individual or business for setting the price of a product a…

Q: What is a “floater”/“inverse-floater” tranche in a CMO offering?

A: CMO( Collateralized mortgage obligation): The financial instrument which is collateralized by the…