What are the net proceeds to the issuer per share

Assignment Help Financial Management
Reference no: EM131360823

An offering for 2,000,000 shares of commons stock has the following profit distribution items: Takedown $2.00 Manager’s fee $0.50 Public offering price $30.00

1. What are the net proceeds to the issuer per share?

a. $28 b. $26.50 c. $27 d. $27.50

2. What is the spread?

a. $2 b. $2.50 c. $3 d. $3.50

3. If a non-managing member of the syndicate sells 100,000 shares, how much commission will that underwriter receive?

a. $200,000 b. $250,000 c. $30,000,000 d. $400,000

4. If the entire issue sells, how much will the managing underwriter receive in management fees?

a. 1 million b. $$500,000 c. $400,000 d. $250,000

Reference no: EM131360823

Questions Cloud

Investment program satisfy the conditions for immunization : A company owns $10000 to be paid at times 2, 4, and 6. The company plans the obligation with an investment program that produces cash flows of X at time 1 and Y at time 5. The elective rate of interest is 10%. Determine X and Y. Does this investment ..
Compute tin-macaulay duration : Consider a 15-year mortage with annual installments. The effective annual rate of interest is 6%. Compute tin- Macaulay duration if the mortgage is prepaid immediately after the third regular payment in made.
Compute the present value of this annuity one year from now : The term structure is defined by s_t = 0.05 + 0.005 t, for t = 1, 2, 3, 4. A three year annuity-immediate will be issued one year from now with annual payments of 1000. Using the appropriate forward rates, compute the present value of this annuity on..
What is the average amount of the disbursement float : On an average day, Plastics Enterprises writes 42 checks with an average amount of $587. These checks clear the bank in an average of 2 days. What is the average amount of the disbursement float?
What are the net proceeds to the issuer per share : An offering for 2,000,000 shares of commons stock has the following profit distribution items: Takedown $2.00 Manager’s fee $0.50 Public offering price $30.00. What are the net proceeds to the issuer per share? If the entire issue sells, how much wil..
What is total rate of return on the bond : Consider a bond (with par value = $1,000) paying a coupon rate of 10% per year semiannually when the market interest rate is only 4% per half-year. The bond has 3 years until maturity. Find the bond's price today and 6 months from now after the next ..
Balance sheet-statement of retained earning-income statement : Financial Statements are critically important in understanding the overall "financial health" of a company. All of the financial statements must be reviewed as a complete package rather than one being analyzed as a standalone statement that could giv..
What is the total rate of return on bond : Consider a bond (with par value = $1,000) paying a coupon rate of 10% per year semiannually when the market interest rate is only 4% per half-year. The bond has 3 years until maturity. a. Find the bond's price today and 6 months from now after the ne..
Determined solely by financial characteristics : A firm's business risk is determined solely by the financial characteristics of its industry. Other things held constant, which of the following events would be most likely to encourage a firm to increase the amount of debt in its capital structure?

Reviews

Write a Review

 

Financial Management Questions & Answers

  What is the operating cash flow in year two

The president of Lowell Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer’s price is $60,000 and it falls into the MACRS 3-year class (33% in year 1, 45% in year 2, 15% in year 3, and 7% in year 4). The firm’s ma..

  Personal financial goals

Personal Financial Goals

  What is the rate of return on stock

Company Z just paid an annual dividend of $1.22 a share. The stock has a market value of $34.60 and a dividend growth rate of 3.1 percent. What is the rate of return on this stock?

  When a projects net present value exceeds zero

When a project’s net present value exceeds zero, then:

  Expected to pay an annual dividend in the amount

ABC Corp. is expected to pay an annual dividend in the amount of $2.50 a share next year. This dividend constantly grows by 5 percent per year. The current price of the company’s stock is $50.60 per share. What is the cost of equity?

  Creating a capital expenditure funding proposal

Ted Jones, the Surgery Unit Director, is about to choose his strategy for creating a capital expenditure funding proposal for the coming year. Ted’s unit needs more room. What should Ted decide to ask for? How should he go about crafting a strategy t..

  Chapter 7 assume that half of the 100000 covered lives in

assume that half of the 100000 covered lives in the commercial payer group will be moved into a capitated plan. what

  The change in exchange rate

Suppose the U.S. dollar substantially depreciates against the Japanese yen. The change in exchange rate Can have a significant economic consequences for U.S. firms Can have a significant economic consequences for Japanese firms Can have a significant..

  Company have to wait before expanding its operations

Winston Enterprises would like to buy some additional land and build a new factory. The anticipated total cost is $152.43 million. The owner of the firm is quite conservative and will only do this when the company has sufficient funds to pay cash for..

  Estimate the value of the leased fee

First-year NOI for a long-term net lease is expected to be $50,000. Rent is escalating at a rate of 3 percent per year, but there is a two-year period between adjustments. Thus, the income for years 1 and 2 will be $50,000, increasing to $50,000 (1+...

  What is maximum annual lease wolfson would be willing to pay

Wolfson Corporation has decided to purchase a new machine that costs $4.5 million. The machine will be depreciated on a straight-line basis and will be worthless after four years. The corporate tax rate is 30 percent.  What is the NAL of leasing for ..

  Find zero coupon bond with a par value

You find a zero coupon bond with a par value of $10,000 and 30 years to maturity. The yield to maturity on this bond is 5.2 percent. Assume semiannual compounding periods.

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