Many shares of stock does phillip have to sell to meet cash
Course:- Financial Management
Reference No.:- EM13942959

Assignment Help >> Financial Management

Phillip's Manufacturing wants to raise $15 million to open a new production center. The company estimates the issue costs including the legal and accounting fees will be $530,000. The underwriters have set the stock price at $23 a share and the underwriting spread at 8.5 percent. How many shares of stock does Phillip's have to sell to meet their cash need? Please show all work.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
A company's common stock is currently selling for $54 per share. Last year, the company paid dividends of $2.98 per share. The projected growth at a rate of dividends for this
Fly Away, Inc., has balance sheet equity of $6.8 million. At the same time, the income statement shows net income of $836,400. The company paid dividends of $414,018 and has 2
McCurdy Co.'s Class Q bonds have a 12-year maturity, $1,000 par value, and a 5.75% coupon paid semiannually, and those bonds sell at their par value. McCurdy's Class P bonds h
Food Distributors Inc. (FDI) is evaluating whether to require its forklift operators to attend a two-day forklift safety class. The company has 250 forklift operators and the
What is the expected return for the stock and What are the expected return and standard deviation for a portfolio that is equally invested in the stock and the risk-free asse
Bristol Steel Corporation (BSC) manufactures steel products. In 2016, the treasurer of HHH invested excess funds into a speculative stock with the intention of liquidating the
Miller's Farm has 120,000 shares of stock outstanding, sales of $850,000, and net income of $55,000. Financial analysts believe the price-earnings ratio for this firm should b
The European Union believes that knowledge of foreign languages is an important factor in business today. Discuss the importance of language in business. How will the European