Sell new shares of stock

Assignment Help Financial Management
Reference no: EM131179962

Your firm is expanding and you need $18 million to help fund this growth. You estimate that you can sell new shares of stock for $30 a share. You also estimate that it will cost you $330,000 for legal, accounting, and other costs related to the stock issue. The underwriters have agreed to a 5 percent spread. How many shares of stock must you sell if you are going to have $18 million available for your expansion needs?

Reference no: EM131179962

Questions Cloud

Streamlined struts connected to horizontal hydrofoils : As a means of eliminating the wave resistance to a high-speed boat, the hulls are supported well above the water by streamlined struts connected to horizontal hydrofoils. If the hydrofoil has the characteristics plotted in Figure 6.8A, what must b..
Profit assuming pure spot-market speculation strategy : Suppose, the current spot rate for US Dollar ($) against the Australian Dollar (A$) is $0.7268/A$, while the six-month forward rate is $0.7033/A$. An investor expects that the spot rate will be $0.6800/A$ in the next six months. Calculate the investo..
Reasoning based on the laws : Explain your reasoning based on the laws you researched for your state. Be sure your paper is in APA style and all sources are properly cited and referenced.
Interview a stockbroker or investment analyst : Interview a stockbroker or investment analyst on his or her views regarding the sale of common stock by a small business.
Sell new shares of stock : Your firm is expanding and you need $18 million to help fund this growth. You estimate that you can sell new shares of stock for $30 a share. You also estimate that it will cost you $330,000 for legal, accounting, and other costs related to the stock..
The cpu fetch-execute cycle : A von Neumann machine has a random-access memory and each successive operation can read or write any memory location, independent of the location accessed by the previous operation and also has a CPU with one or more registers that hold data that are..
How it will be achieved and perceived by customers : Company overview o Mission statement - the purpose of the business o Vision statement - what the business desires to achieve in the long run o Business Core Values - the operating philosophy and principles that will guide the intern al business co..
Describe different types of loans made by a commercial bank : Describe the different types of loans made by a commercial bank. -  Mat does a banker need to know in order to decide whether to make a loan?
What is the standard deviation of this stock return : You estimate the economy will be really booming next year with 30% probability, and normal with 70% probability. Your analysis of an airline company suggests that the company stock will return 15% if the economy booms, and only 6% if the economy is n..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the cost of external common equity

What is the cost of external common equity?

  Compute the call price and put price

Suppose the spot exchange rate for Narnianly currency is trading for $2/N and one year later it can go up to $2.5/N, an increase of 25 percent, or down to $1.80/N, a decrease of 10 percent. assume intiallly that the U.S. interest rate is 1 percent an..

  Fixed rate mortgage to buy new home

You need a 30-year fixed rate mortgage to buy a new home for $290,000. Your mortgage bank will lend you the money at a 5.85 percent APR for this 360-month loan. However, you can afford monthly payments of only $1,300, so you offer to pay off any rema..

  About portfolio allocation theory

Choose the statement which is most correct about portfolio allocation theory:

  Comparing two annuities with equal present values

You are comparing two annuities with equal present values. The applicable discount rate is 7.5%. One annuity pays $5,000 on the first day of each year for twenty years. How much does the second annuity pay each year for twenty years if it pays at the..

  Excess short-term cash in particular money market investment

The treasurer of a large corporation wants to invest $22 million in excess short-term cash in a particular money market investment. The prospectus quotes the instrument at a true yield of 3.33 percent; that is, the EAR for this investment is 3.33 per..

  What are the net cash flows of the project for year zero

Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,280,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life. What are the net cash flows of th..

  Beta and required rate of return

Beta and required rate of return

  What is the net cash flow from operating activities

What is the net cash flow from operating activities? What is the net cash flow from investing activities? What is the net cash flow from financing activities? What is the change in cash?

  What is the probability that the equation

Equation:  x/y=a/b Out of the 10 natural numbers (1-10) if you draw 4 numbers at random what is the probability that the equation would be equal. (Example 2/2=3/3, 1/3=2/6 etc).

  What is the external financing needed

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,500 was paid, and Martin wishes to maintain a constant payout ratio. Next year’s sales are projected to be $42,300. What is the external financing needed?

  How much would it be willing to lend the business owner

A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $3,500 per month for the next three years and then $2,500 per month for two years after that. If the bank is charging customers 11.00 percent APR, ..

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