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A recent offering of Talmot Corporation stock was underwritten by Advantage Securities. The terms were: Price to public $10 per share, number of shares 10 million, and proceeds to Talmot $95,000,000. The out-of-pocket expenses incurred by Advantage Securities in the design and distribution of the issue were $1,200,000. Talmot will incur expenses of $900,000. This is an example of a:
a. Negotiated deal
b. Best efforts deal
c. Hybrid deal
d. Not enough information to determine
e. none of the above
A corporation has decided to replace an existing asset with a newer model. Two years ago, the existing asset originally cost $30,000 and was being depreciated under MACRS using a five-year recovery period. The existing asset can be sold for $25,000.
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