How much money did the company receive before paying its

Assignment Help Accounting Basics
Reference no: EM13566799

When Microsoft went public, the company sold 3 million new shares. In addition, existing shareholders sold .5 million shares and kept 22.4 million shares. The new shares were offered to the public at $20, and the underwriters received a spread of $1.81 a share. At the end of the first day's trading the market price was $34 a share. a. How much money did the company receive before paying its portion of the direct costs? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Amount received $__ million b. How much did the existing shareholders receive from the sale before paying their portion of the direct costs? Amount received $ _million c. If the issue had been sold to the underwriters for $29 a share, how many shares would the company have needed to sell to raise the same amount of cash? Number of shares_ million d. How much better off would the existing shareholders have been? Gain to shareholders $ _million?

Reference no: EM13566799

Questions Cloud

A public issue of 10 million face value of 10-year debt the : you need to choose between the following types of issues a public issue of 10 million face value of 10-year debt. the
For 2012 lbj corporation reported net income of 75000 net : for 2012 lbj corporation reported net income of 75000 net sales 750000 and weighted average shares outstanding of 7500.
If the spot rate of the israeli shekel is 551 shekels per : if the spot rate of the israeli shekel is 5.51 shekels per dollar and the 180-day forward rate is 5.97 shekels per
The market value of the marketing research firm fax facts : the market value of the marketing research firm fax facts is 400 million. the firm issues an additional 150 million of
How much money did the company receive before paying its : when microsoft went public the company sold 3 million new shares. in addition existing shareholders sold .5 million
Miranda wants to open a flower shop in four years after : miranda wants to open a flower shop in four years. after completing her planning process miranda estimates she will
The connors companys last dividend was 100 its dividend : the connors companys last dividend was 1.00. its dividend growth rate is expected to be constant at 15 for 2 years
A treasury bond is quoted at a price of 10114 with a : a treasury bond is quoted at a price of 10114 with a current yield of 7.236 percent. what is the coupon rate?a. 7.20
There are many differences between financial and managerial : 1.use the cash flow on total assets ratio to determine which of these three companies is using its assets most

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute the plantwide overhead rate

Compute the plantwide overhead rate that would be used in the companys conventional cost system. Using the plantwide rate, compute the unit product cost for each product.

  Interest in financial information about company

Boeing Company is the largest manufacture of commercial aircraft in the United States and is a major employer in Seattle, Washington. Explain why each of the following individuals or organizations would be interested in financial information about..

  Unocrrected misstatements

Uncorrected Misstatement and Performance Materiality. Rivers, CPA is auditing the financial statements of Charger Company, a client for the past five years. During past audits of charger, River has only identified some immaterial misstatements (mo..

  Information technology that require large capital outlays

How may financial managers budget for unforeseen changes and improveme. How may financial managers budget for unforeseen changes and improvements in information technology that require large capital outlays?

  Periodic inventory system problem

Barkley Company uses a periodic inventory system and has the following account balances: Beginning Inventory $50,000, Ending Inventory $70,000, Freight-in $12,000, Purchases $450,000, Purchase Returns and Allowances $8,000, and Purchase Discounts ..

  Lakeshore gelato distributors lgd began a special promotion

lakeshore gelato distributors lgd began a special promotion in july 2012 in an attempt to increase sales. a coupon was

  Determine the contribution margin in dollar

Determine the contribution margin in dollars, per unit, and as a ratio and using the contribution margin technique, compute the break-even point in dollars and in units.

  What amount of these travel-related expenditures

After the course, Danny spent the last day sightseeing. During the trip, Danny also paid $140 a day for meals, and $80 a day for a rental car. What amount of these travel-related expenditures may Danny deduct as business expenses.

  What are impairments

Impairments are: a) recognized as a realized loss if the impairment is judged to be temporary. b) based on fair value for available-for-sale investments and on negotiated values for held-to-maturity investments.

  Journal entries for redemption of bond

Prior to maturity, when the carrying value of the bonds was $105,000 scott retired the bonds at 102. Prepare the journal entries for redemption of the bond.

  Error on the investment account

Hope mistakenly accounted for the investment as available for sale instead of using the equity method. What effect would this error have on the investment account and net income, respectively, for 2011?

  Compute the total overhead applied to production

Work in Process consisted of two jobs, no. 101 ($20,400) and no. 103 ($14,800). During May, direct materials requisitioned from the storeroom amounted to $96,500, and direct labor incurred totaled $114,500.

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