What are the total expenses of the issue as a percentage

Assignment Help Finance Basics
Reference no: EM13274949

Winston Sporting Goods is considering a public offering of common stock. Its investment banker has informed the company that the retail price will be $18 per share for 600,000 shares. The company will receive $16.50 per share and will incur $150,000 in registration, accounting, and printing fees. a. What is the spread on this issue in percentage terms? What are the total expenses of the issue as a percentage of total value (at retail)? b. If the firm wanted to net $18 million from this issue, how many shares must be sold?

Reference no: EM13274949

Questions Cloud

What is the book value of kingons assets today : If all the current assets were liquidated today, the company would receive $825,000 cash. What is the book value of Kingon's assets today? What is the market value?
Find the tension in the vertical main cable : A 300kg piano is being lowered into position by a crane while two people steady it with ropes pulling to the sides. What is the tension in the vertical main cable supporting the piano
What is the value of teldar to gekko properties : Teldar's post-merger beta is estimated to be 1.7, and its post-merger tax rate would be 35%. The risk-free rate is 6%, and the market risk premium is 5.5%. What is the value of Teldar to Gekko Properties?
What will be the beta of the new merged firm : what will be the beta of the new merged firm? There will be no additional infusion of debt in the merger.
What are the total expenses of the issue as a percentage : What are the total expenses of the issue as a percentage of total value (at retail)? b. If the firm wanted to net $18 million from this issue, how many shares must be sold?
Explain what mass of the percipitate is formed : An excess of aqueous AgNO3 reacts with 41 mL of 5 M K2CrO4(aq) to form a precipitate. What mass of the percipitate is formed
What is the average velocity for the entire trip : A commuting student leaves home and drives to school at an average speed of 41.0 km/h. What is the average velocity for the entire trip
Should the founding stockholders be pleased : Should the founding stockholders be pleased with the $40 they receive for PLEASE EXPLAIN!!! their shares?
Mechanized process or manual process to prepare the product : A distributor of prewashed shredded lettuce is opening a new plant and considering whether to use mechanized process or manual process to prepare the product

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Find the cost of the holiday hotel

Based on acquisition mode and market value accounting for land and other fixed assets acquired for business - Find the cost of the Holiday Hotel.

  The important steps in the process

Elucidate the process you will utilize to accomplish this task, including the information you will want also the important steps in the process.

  Riskiest base on standard deviation

Based on the answer from question three, which asset appears riskiest base on standard deviation - Explain the various that you might take and their implications

  Johnson & williams

Johnson & Williams have approached you to obtain funding for the proposed expansion of their manufacturing capacity and product range.

  Evaluate the gain or loss to the lender

The commission rate is 0.5%. The market interest rate is 5.0% and the short rebate rate is 3.0%. Evaluate the gain or loss to the lender.

  What should the bonds sell for in the market today

What should be the price of the security you are considering purchasing? Calculate and justify your answer and what should the bonds sell for in the market today

  Computing the percentage returns

Assume a stock had the initial price of= $65.3 per share, paid the dividend of $4 per share in the year, and had the ending share price of=$107.67. Compute the percentage returns?

  Determine the expected rate of return, standard deviation

You have evaluated the following probability distributions of expected future returns for Stock X and Stock Y, determine  the expected rate of return for Stock X and Stock Y?

  How many shares will the firm repurchase

Management is considering issuing $120,000 of debt at an interest rate of 9 percent and using the proceeds on a stock repurchase. Ignore taxes. How many shares will the firm repurchase if it issues the debt securities?

  Computation the payback period for a project

Computation the payback period for a project has the following costs and benefits

  How the beta of a portfolio can equal the market beta

Explain how the beta of a portfolio can equal the market beta if 50 percent of the portfolio is invested in a security that has twice the amount of systematic risk as an average risky security.

  Calculate the next annual dividend amount

Company XYZ is currently trading at $97.00 a share. The expected growth rate is 4% and the required return rate is 7.8%. Calculate the next annual dividend amount using the Constant Dividend Growth Model.

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