Question

Health magazine provides one issue per month to subscribers for a service fee of $240 per year. Assume January 1 is the first day of operations for this company, and no new customers join during the year. How much does each issue of the magazine cost?

1) $10
2) $15
3) $20
4) $25

Answer 1

Each issue of the magazine costs $20.

Step-by-step explanation:

To find out how much each issue of the magazine costs, we need to divide the annual service fee of $240 by the number of issues per year. Since the magazine provides one issue per month, there are 12 issues in a year. Therefore, each issue of the magazine costs $240/12 = $20.

The Issue Price is the first price at which the shares are sold. The listing price is the price at which the shares will trade on the stock market after the initial public offering. First, the issue price is chosen by the corporation, while the listing price is determined by market supply and demand.

Another example of an issue price is a bond issue. Bonds are usually issued at face value. Bonds are usually issued in increments of 1,000 dollars or 5,000 dollars Simply say the starting price at the beginning of the security term.