Investment banker assume the risk of sale to the public

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1. Villa Pizza had sales last year of $850,000. It expects sales to increase 10% this next year. The firm is operating at full capacity. If Asset/Sales = 55%, Liabilities/Sales = 20%, Profit Margin = 12% and the POR = 50%, what would be the Additional Funds Needed?

-$26,350

$58,650

$246,500

$24,650

2. Which of the following methods of issuing securities does the investment banker assume the risk of sale to the public?

Private placement

Underwriting

Best efforts

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Reference no: EM131599925

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