Table 12-11
Doug, Davis, and Dwight Are in the Process

question 65

Multiple Choice

Table 12-11
Doug, Davis, and Dwight are in the process of liquidating their partnership. They share profits and losses in a 5:3:2 ratio. Following is the current balance sheet for the partnership:
$\begin{array}{lcll}\text { Cash } & \$ 100,000 & \text { Liabilities } & \$ 55,000 \\\text { Other assets } & 225,000 & \text { Doug, canital } & 145,000\\&&\text { Davis, capital } & 50,000 \\&&\text { Dwight, capital } & 75,000\end{array}$ $\text { Total assets }\quad\$325,000\quad\quad\quad \text { Total liabilities and capital }\quad\$325,000$
-Refer to Table 12-11.If the other assets are sold for $250,000,the total amount of cash to be distributed to the partners is:

• A) $295,000
• B) $250,000
• C) $350,000
• D) $195,000

Understand the concepts associated with private placements, public issues, and the transition from private to public ownership.

Identify key terms and concepts related to the secondary market, including lockup agreements, holder-of-record date, and underpricing phenomena.

Analyze the rationale behind firms opting for equity offerings over debt issuances despite the cost implications.

Define key terms related to equity offerings, including dilution, ex rights, and oversubscription privilege.

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Definitions:

Steroids

A large class of organic compounds with a characteristic molecular structure containing four rings of carbon atoms; examples include hormones and cholesterol.

Antibiotics

Medications used to prevent and treat bacterial infections by either killing bacteria or inhibiting their growth.

Mucus-Thinning Drugs

Medications designed to reduce the viscosity of mucus, helping to alleviate congestion in the respiratory tract.

Vocal Cords

Paired bands of muscle tissue located in the larynx (voice box) that vibrate to produce sound when air is expelled from the lungs.