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Question 13 Management of Blossom, Inc., is planning to raise $1,291,500 in new equity through a...
Question 13 Management of Sheridan, Inc., is planning to raise $1,451,250 in new equity through a...
Question 13 Management of Sheridan, Inc., is planning to raise $1,451,250 in new equity through a private placement. If the sale price is $22.50 per share, how many shares does the company have to issue? Number of shares shares
Management of Crane, Inc., is planning to raise $1,317,500 in new equity through a private placement
Management of Crane, Inc., is planning to raise $1,317,500 in new equity through a private placement. If the sale price is $21.25 per share, how many shares does the company have to issue? Number of shares _______ shares
A company is planning a new plant and needs to raise (net of underwriting cost) $18.6 million to finance it. The company...
A company is planning a new plant and needs to raise (net of underwriting cost) $18.6 million to finance it. The company plans to raise the money through a general cash offering priced at an offer price of $4 a share. The underwriters charge a 7 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. 5.000 b. 21.505...
A company is planning a new plant and needs to raise (net of underwriting cost) $14.25...
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...
(a) Mega Plus Bhd wants to raise RM15 million in new equity through rights offering. Currently...
(a) Mega Plus Bhd wants to raise RM15 million in new equity through rights offering. Currently its share price is RM30 per share and the corporation has 3 million share outstanding. The subscription price is half the current share price. (i) Calculate how many new shares Mega Plus Bhd must issue? (3 marks) (ii) Assuming you own 30,000 ordinary shares in Mega Plus Bhd. If you receive the rights offering, calculate how many of the new shares can you purchase?...
13) A, B, C LUMPally love feeded to sell to raise the same amount of cash?...
13) A, B, C
LUMPally love feeded to sell to raise the same amount of cash? d. How much better off would the existing share- holders have been? 12. Flotation Costs. The market value of the marketing research firm Fax Facts is $600 million. The firm issues an additional $100 million of stock, but as a result the stock price falls by 2%. What is the cost of the price drop to existing shareholders as a fraction of the funds...
The Zuri Co. needs to raise $66.6 million to finance its expansion into new markets. The...
The Zuri Co. needs to raise $66.6 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 $66 per share and the company’s underwriters charge a spread of 8 percent. How many shares need to be sold? Number of shares offered:
A company wants to raise $500 million in a new stock issue. Its investment banker indicates...
A company wants to raise $500 million in a new stock issue. Its investment banker indicates that the sale of new stock will require 8 percent underpricing and a 7 percent spread. It’s current stock price is $75. Round answers & intermediate calculations to the ones place. Spread is calculated on the amount after the underpricing. What will be the price to the public? $ What is the net amount per share received by the company? $ How many shares...
Please answer both the questions. Show work! Question 2 Cochrane Corporation is considering an equity issue...
Please answer both the questions. Show work!
Question 2 Cochrane Corporation is considering an equity issue to finance a new refining plant. A total of $800 million is needed. If the direct cost of issuing the equity is 2.25%, how large does the issue have to be? Question 3 Fly Holdings Ltd has announced a rights offer to raise $15 million for a new operation in Coober Pedy. The share currently sells for $8.00 and there are 150 million shares...
Underwriting and Flotation Expenses The Beranek Company, whose stock price is now $30, needs to raise...
Underwriting and Flotation Expenses The Beranek Company, whose stock price is now $30, needs to raise $30 million in common stock. Underwriters have informed the firm's management that they must price the new issue to the public at $26 per share because of signaling effects. The underwriters' compensation will be 4% of the issue price, so Beranek will net $24.96 per share. The firm will also incur expenses in the amount of $170,000. How many shares must the firm sell...
Question 13 Management of Sheridan, Inc., is planning to raise $1,451,250 in new equity through a private placement. If the sale price is $22.50 per share, how many shares does the company have to issue? Number of shares shares
13) A, B, C
LUMPally love feeded to sell to raise the same amount of cash? d. How much better off would the existing share- holders have been? 12. Flotation Costs. The market value of the marketing research firm Fax Facts is $600 million. The firm issues an additional $100 million of stock, but as a result the stock price falls by 2%. What is the cost of the price drop to existing shareholders as a fraction of the funds...
Please answer both the questions. Show work!
Question 2 Cochrane Corporation is considering an equity issue to finance a new refining plant. A total of $800 million is needed. If the direct cost of issuing the equity is 2.25%, how large does the issue have to be? Question 3 Fly Holdings Ltd has announced a rights offer to raise $15 million for a new operation in Coober Pedy. The share currently sells for $8.00 and there are 150 million shares...
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