The beranek company whose stock price is now 25 needs to

Assignment Help Corporate Finance
Reference no: EM13379367

The Beranek Company, whose stock price is now $25, needs to raise 20 million in common stock. Underwriters have informed the firm's management that they must price the new issue to the public at $ 22 per share because of signaling effects. The underwriters' will be %5 of the issue price, so Beranek will net $20.90 per share. The firm will also incur expenses in the amount of $ 150,000. How many shares must the firm sell to net $ 20 million after underwriting and flotation expense?

Reference no: EM13379367

Questions Cloud

The following particulars were extracted from the books of : the following particulars were extracted from the books of x ltd. on 31 april 2011 the day on which a winding up order
How much does the economy have to grow potential output is : how much does the economy have to grow potential output is 3.5 and the unemployment rate is 7.3 in 2014 to bring the
Over the past 10 years your 15000 in gold coins has : over the past 10 years your 15000 in gold coins has increased in value by 200 percent. you plan to sell these coins
Suppose the economy has a natural rate of unemployment of : suppose the economy has a natural rate of unemployment of 5.a. suppose short-run output over the next four years is 1 0
The beranek company whose stock price is now 25 needs to : the beranek company whose stock price is now 25 needs to raise 20 million in common stock. underwriters have informed
A construction company is considering procuring one of two : a construction company is considering procuring one of two types of heavy construction equipment a and b. each type of
1from the perspective of classical macroeconomic theory an : 1.from the perspective of classical macroeconomic theory an excess of aggregate spending woulda. increase aggregate
The no-shoplift security company is interested in bidding : the no-shoplift security company is interested in bidding on a contract to provide a new security system for a large
As the money manager of boston bank you have 1000000 : as the money manager of boston bank you have 1000000 available for six months. you have the opportunity to lend the

Reviews

Write a Review

Corporate Finance Questions & Answers

  Evaluate long-term solvency ratio

Calculate the following: Current ratio, long-term solvency ratio, contribution ratio, programs and expense ratio, general and management and expense ratio, fund-raising and expense ratio, and revenue and expense ratio for the years 2003 and 2004.

  Question 1 you are considering investing in facial

question 1 you are considering investing in facial laboratories. suppose facial is currently undergoing expansion and

  Compute the current price of the stock

Laser Optics will pay a common stock dividend of dollar 1.60 at the end of the year. The required rate of return on the common stock is 13 percent. The corporation has a constant growth rate of 7 percent.

  Analysts at tabby fur storage predict

Analysts at Tabby Fur Storage predict that the net present value of a proposed new $10 million warehouse is $1 million. How should these findings be interpreted - the project should be rejected because the NPV is less than the cost of the warehouse..

  Evaluate the firms required rate of return

Explain briefly: total risk, diversifiable risk and market risk and why are these concepts important and Moerdyk Company's stock has a beta of 1.40, the risk-free rate is4.25%, and the market risk premium is5.50%.What is the firm's required rate of r..

  Evaluate each projects net present value

Evaluate each projects net present value, internal rate of return and payback period

  Calculate the variance for portfolio

Calculate the variance for each portfolio and then copy it down. This formula should have six values in it: 1 for Stock and what is the smallest standard deviation that you must accept?

  What yield to maturity is the bond offering

Calculate the price of a zero coupon bond that matures in 18 years if the market interest rate is 5.20 percent and whats the current yield of a 6.80 percent coupon corporate bond quoted at a price of 97.48?

  What are the cash flows assoicated with the project

What are the cash flows assoicated with the project, what is the project's IRR and assuming a project cost of capital of 10 percent, what is the projectect's NPV?

  Compute the future value using the savings and graduation

compute the future value using the savings and graduation gift.jay coleman just graduated. he plans to work for 5 years

  Find what was the firms economic val added

How much value did management add to stockholders' wealth during 2012 - What was the firms Economic Val Added

  Providing financial earnings projections

Assume that Jimmy Cliff, a financial writer, recently stated that "there are substantial arguments for including receiving projections in yearly reports & the like.

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