Offer price and total amount firm will raise net of spread

Assignment Help Financial Management

Reference no: EM131044641

Nano Manufacturing wants to issue 2 million new shares. It has 4 million shares outstanding, which its investment banking firm estimates $65 million. If the investment banking firm charges a 4% spread, calculate the offer price and total amount ($) the firm will raise net of the spread.

Reference no: EM131044641

Questions Cloud

Example of asymmetric information in financial markets : An example of asymmetric information in financial markets is that

Capital market instrument : Which of the following is a capital market instrument?

Use present value as the method of analysis : You are the new financial manager,your grandfather is the current presiden of the firm. One of the first things you notice is your family's firm uses payback to make it's capital investment decisions. Tell your grandfather (very diplomatically as he ..

Russo home services-calculate revised depreciation expense : Russo Home Services cleans homes and businesses especially those with upholstered furniture and plie carpets. To remain competitive with like businesses, three years ago the company invested in some important equipment. Calculate the net book values ..

Offer price and total amount firm will raise net of spread : Nano Manufacturing wants to issue 2 million new shares. It has 4 million shares outstanding, which its investment banking firm estimates $65 million. If the investment banking firm charges a 4% spread, calculate the offer price and total amount ($) t..

Concluded that the demand for annual preventive clinic : Researchers have concluded that the demand for annual preventive clinic visits by children with asthma equals 1 + 0.00004 × Y − 0.04 × P . In this equation Y represents family income and P represents price. Calculate how many visits a child with a fa..

Considering project-result in initial aftertax cash savings : Scanlin, Inc., is considering a project that will result in initial aftertax cash savings of $1.71 million at the end of the first year, and these savings will grow at a rate of 1 percent per year indefinitely. What is the maximum initial cost the co..

What are interest and principal portions in first payment : A 30-year, $230,000 mortgage has a rate of 5.2 percent. What are the interest and principal portions in the first payment? What are the interest and principal portions in the second payment?

Dividends are expected to grow at constant rate : The Jackson–Timberlake Wardrobe Co. just paid a dividend of $1.85 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. Investors require a return of 12 percent on the company's stock. What ..

User Account

All Pages