Shares of equity via general cash offering raise need funds

Assignment Help Financial Management
Reference no: EM13972220

The Elkmont Corporation needs to raise $51.1 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 $27 per share and the company’s underwriters charge a spread of 7.5 percent. (Enter your answer as directed, but do not round intermediate calculations.) Required: How many shares need to be sold? (Enter the whole number for your answer, not millions (e.g., 1,234,567). Round your answer to the nearest whole number (e.g., 1,234,567).)

Reference no: EM13972220

Questions Cloud

How much should he invest in the risk-free security : Nuada Airgetlam wants to create a $75,000 portfolio comprised of two stocks plus a risk-free security. Stock A has an expected return of 13.01 percent and stock B has an expected return of 11.47 percent. Nuada wants to own $27,000 of stock B. The ris..
Debt in the corporation and corporation''s leverage factor : Joe owns and operates Socccer Stores of America. He has $400000 of his own money in the business as equity capital, but because of the use of debt, the total value of his stores is $800000. Calculate the percentage of debt in the corporation, and the..
Maximum number of processes : The amount of disk space that must be available for page storage is related to the maximum number of processes, n, the number of bytes in the virtual address space, v, and the number of bytes of RAM, r. Give an expression for the worst-case disk-spac..
Businesses produce earnings before interest and tax : Adams operates his $25000 firm using his own equity. Bob operates his firm with $12500 of his own money plus $12500 of debt at a cost of 12 percent interest. Calculate Adams's and Bob's return on equity if their respective businesses produce earnings..
Shares of equity via general cash offering raise need funds : The Elkmont Corporation needs to raise $51.1 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 $27 per share and the company’s under..
Define the concept of a stable democracy : Then use the UK and the US legislatures as examples of the effect of strong legislatures on stable democracies.
Analyze the topic from the perspectives of realism : Select a current topic of international relations and analyze the topic from the perspectives of realism, liberalism, Marxism, constructivism, or feminism.
Physical address and a virtual address : What is the difference between a physical address and a virtual address?
Conduct a literature review to locate statistical data : For this assignment, conduct a literature review to locate statistical data that compares the United States suicide rates with a country of your choosing. Compare items such as the suicide rates, factors leading to suicides, and treatment options

Reviews

Write a Review

 

Financial Management Questions & Answers

  Determine the annual net benefits to great lakes oil

Determine the annual net (pretax) benefits to Great Lakes Oil of establishing a lock-box system with the Salt Lake City bank. Which of the two lockbox systems (if any) should the firm select?

  Made significant direct foreign investments

In recent years German automobile manufacturers have made significant direct foreign investments in the U. S. Their main motive in doing so is attributable to

  Put option is currently worth

A put option is currently worth $10. Just one second later, the stock price decreased by $5 to $45. The absolute value of the put option delta is 1/2. a. Approximately, what would the new put option be? b. using the original stock price of $50, and a..

  What interest rate would the investment

Stanley has $2,400 that he is looking to invest. His brother approached him with an investment opportunity that could give Patrick $4,800 in 4 years. What interest rate would the investment have to yield in order for Stanley’s brother to deliver on h..

  How many shares will you own after the split

XYZ has 400,000 shares of common stock outstanding, a P/E ratio of 8, and $500,000 in net income. The board of directors has just voted in favor of the 3-for-2 stock split. You owned 100 shares before the stock split. How many shares will you own aft..

  Users of financial statements

Explain whether users of financial statements should exercise caution when interpreting financial statement compliant with GAAP and explain how the choice of depreciation method affects reported profits.

  Merger analysis merger analysistransworld communications

merger analysis ltbrgt ltbrgttransworld communications inc. a large telecommunications company is evaluating the

  Equipment trust certificates are in essence-form of leasing

A project is acceptable if the required rate of return exceeds the internal rate of return. Positive net present value projects provide returns in excess of what financial markets require. Equipment trust certificates are, in essence, a form of leasi..

  Find the amount of interest paid over the five years of loan

Assume you take out a $180,000, 30 year mortgage at 3.5%. The loan is fully amortized and payments are monthly. Find the amount of interest paid over the 5 years of the loan(60 months). The loan balance after 60th payment is made

  List the objectives that banks have for buying securities

List the objectives that banks have for buying securities. Explain the motive for each.

  The trust fund earns a five percent rate of return

Arnold Ziffle established a trust fund that provides $75,000 in scholarships each year for worthy students. The trust fund earns a 5 percent rate of return. How much money did Ziffle contribute to the fund assuming that only the interest income is di..

  Fixed-rate mortgage-retire the mortgage

A borrower took out a 30-year fixed-rate mortgage of $2,250,000 at a 6.2% annual rate with monthly payments. After five years, she wishes to pay off the remaining balance. Interest rates have by then fallen to 4.0%. How much must she pay to retire th..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd