Question

In: Finance

GL Enterprises has 130,000 shares of stock outstanding. Janet, who is an individual investor, wants to...

GL Enterprises has 130,000 shares of stock outstanding. Janet, who is an individual investor, wants to buy 400 of these shares. The price she will have to pay is the _____ price.

Select one:

a. Bid

b. Margin

c. Broker

d. Ask

e. Spread

Solutions

Expert Solution

The correct answer is d. Ask price

Whenever an investor buys a share it has to pay the ask price. Ask price can be defined as the lowest price at which shares are being offered for purchase to investors.

Therefore Janet has to pay the ask price for 400 shares to buy the shares. It can also be said that GL Enterprise will not accept anything lower than the ask price to sell its shares.

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Market Enterprises, Inc. has 1.0 million shares of stock outstanding. The stock currently sells for $25...
Market Enterprises, Inc. has 1.0 million shares of stock outstanding. The stock currently sells for $25 per share. The firm’s debt is publicly traded, and its market value was recently quoted at 102% of face value. It has a total face value of $7 million, and it is currently priced to yield 7 percent. The risk-free rate is 6%, and the market risk premium is 7%. You’ve estimated that Market Enterprises has a beta of .95. If the corporate tax...
Saint Nick Enterprises has 17,900 shares of common stock outstanding at a price of $71 per...
Saint Nick Enterprises has 17,900 shares of common stock outstanding at a price of $71 per share. The company has two bond issues outstanding. The first issue has 9 years to maturity, a par value of $1,000 per bond, and sells for 102.5 percent of par. The second issue matures in 23 years, has a par value of $2,000 per bond, and sells for 107.5 percent of par. The total face value of the first issue is $270,000, while the...
Saint Nick Enterprises has 15,500 shares of common stock outstanding at a price of $59 per...
Saint Nick Enterprises has 15,500 shares of common stock outstanding at a price of $59 per share. The company has two bond issues outstanding. The first issue has 7 years to maturity, a par value of $1,000 per bond, and sells for 94 percent of par. The second issue matures in 21 years, has a par value of $2,000 per bond, and sells for 101.5 percent of par. The total face value of the first issue is $150,000, while the...
Pealand Company has 50,000 shares of common stock outstanding and 2,000 shares of preferred stock outstanding....
Pealand Company has 50,000 shares of common stock outstanding and 2,000 shares of preferred stock outstanding. The common stock is $1.00 par value. The preffered stock has a $100 par value, a 5% dividend rate, and is noncumulative. On October 31, 2015, the company declares dividends of $0.25 per share for common. Provide the journal entry for the declaration of dividends.
Spicer Reports Corp has 400,000 shares of common stock outstanding, 200,000 shares of preferred stock outstanding,...
Spicer Reports Corp has 400,000 shares of common stock outstanding, 200,000 shares of preferred stock outstanding, and 40,000 bonds. If the common shares are selling for $25 per share, the preferred shares are selling for $12.50 per share, and the bonds are selling for 97 percent of par, what would be the weight used for common stock equity in the computation of Spicer's WACC? A. 18.59% B. 19.49% C. 24.37% D. 62.50% E. 79.75% Comfort Chair, Inc. has a $1.5...
An investor owns 1,000 shares of IMAX Corporation. This individual thinks the company has a huge...
An investor owns 1,000 shares of IMAX Corporation. This individual thinks the company has a huge growing potential and decides not to sell any of the holdings. Explain the underlying behavior finance concepts involved and how they drive the investment decision making.
An investor owns 1,000 shares of IMAX Corporation. This individual thinks the company has a huge...
An investor owns 1,000 shares of IMAX Corporation. This individual thinks the company has a huge growing potential and decides not to sell any of the holdings. Explain the underlying behavior finance concepts involved and how they drive the investment decision making.
An investor owns 1,000 shares of IMAX Corporation. This individual thinks the company has a huge...
An investor owns 1,000 shares of IMAX Corporation. This individual thinks the company has a huge growing potential and decides not to sell any of the holdings. Explain the underlying behavior finance concepts involved and how they drive the investment decision making.
Bluefield Corporation has 6 million shares of common stock outstanding, 600,000 shares of preferred stock that...
Bluefield Corporation has 6 million shares of common stock outstanding, 600,000 shares of preferred stock that pays an annual dividend of $8, and 200,000 bonds with a 10 percent coupon (semiannual interest) and 20 years to maturity. At present, the common stock is selling for $50 per share, the bonds are selling for $950.62 per $1,000 of face value, and the preferred stock is selling at $74 per share. The estimated required rate of return on the market is 13...
1. Ajax Enterprises had 220,000 shares of common stock issued and outstanding at December 31, 2025....
1. Ajax Enterprises had 220,000 shares of common stock issued and outstanding at December 31, 2025. Unexercised stock options to purchase 40,000 shares of common stock at $20 per share were outstanding at the beginning and end of 2026. The market price of Glendale's common stock was $25 per share during 2026. Net income for the year ended December 31, 2026, was $1,100,000. What should be Ajax's 2026 diluted earnings per common share, rounded to the nearest penny? 2.Ajax Corporation...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT