dollars of equity to be sold = amount required / (1- underwriting spread) + filing fees
=> $22,000,000 / (1-0.052) + 2,000,000
=>$23,206,751.0548 + 2,000,000
=>25,206,751.0548.
=>25,206,751.05....(rounded to two decimals)
Question 2 1 pts Green Tractor needs to raise $22 to expand their distribution network. They...
Green Tractor needs to raise $30 to expand their distribution network. They will selling equity for cash to raise this money. If the underwriting spread they will pay is 8.8%, and they will have to pay $2 million in filing fees, how many dollars of equity do they need to sell?
Green Tractor needs to raise $43 to expand their distribution network. They will selling equity for cash to raise this money. If the underwriting spread they will pay is 6.3%, and they will have to pay $3 million in filing fees, how many dollars of equity do they need to sell?
The Elkmont Corporation needs to raise $63.8 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $22 per share and the company's underwriters charge a spread of 7.5 percent. The SEC filing fee and associated administrative expenses of the offering are $1,450,000. How many shares need to be sold? (Do not round intermediate calculations and enter your answer in...
A company is planning a new plant and needs to raise (net of underwriting cost) $14.25 million to finance it. The company plans to raise the money through a general cash offering priced at an offer price of $5 a share. The underwriters charge a 5 per cent spread. How many shares does the company have to sell to achieve its goal (in millions to three decimal places)? (Hint: required amount/(1-spread) = issue amount) Select one: a. 3.000 b. 15.789...
Item 5 Item 5 The Elkmont Corporation needs to raise $63.8 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $22 per share and the company’s underwriters charge a spread of 7.5 percent. The SEC filing fee and associated administrative expenses of the offering are $1,450,000. How many shares need to be sold? (Do not round intermediate calculations and...
The Elkmont Corporation needs to raise $63.8 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $22 per share and the company's underwriters charge a spread of 7.5 percent. The SEC filing fee and associated administrative expenses of the offering are $1,450,000. How many shares need to be sold? (Do not round intermediate calculations and enter your answer in...
i Camu enterprises needs to raise $25 million to finance its expansion into france. The company will sell new shares of equity ng a general cash uffering to raise the needed funds. Suppose the offer price is $48 per share and the companys underwriters change an 8% spread. The total amount for the direct costs the from reeds to pay for the SEC filing fee, legal and accounting expenses of the offering IS $980,000. How many shares need to be...
The Scandrick Corporation needs to raise $80 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $35 per share and the company’s underwriters charge a spread of 5 percent. If the SEC filing fee and associated administrative expenses of the offering are $600,000, how many shares need to be sold? (Do not round intermediate calculations and enter your answer...
The Elkmont Corporation needs to raise $51.5 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $31 per share and the company’s underwriters charge a spread of 9.5 percent. The SEC filing fee and associated administrative expenses of the offering are $1,455,000. How many shares need to be sold? (Do not round intermediate calculations and enter your answer in...
The Educated Horses Corporation needs to raise $40 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $30 per share and the company's underwriters charge an 8 percent spread. If the SEC filing fee and associated administrative expenses of the offering are $1,080,000, how many shares need to be sold? (Do not round your intermediate calculations.) O 1,488,406 O...