The total cost to twitter of the equity issue

Assignment Help Financial Management
Reference no: EM131871360

Goldman-led Twitter underwriters share $59.2 million in IPO fees. That's 3.25% of the $1.82 billion that Twitter raised in its IPO.

Twitter's 70 million IPO shares rose to $44.90 per share at the close in New York from the initial public offering price of $26.

a. What is your best guess as to the total cost to Twitter of the equity issue?

b. Is the entire cost of the underwriting a source of profit to the underwriters?

Please answer question 2. It has 2 parts. Please show work if necessary or provide explanation if needed.

Reference no: EM131871360

Questions Cloud

Capital gains yield and yield to maturity : What is the yield to maturity? For the coming year, what is the expected current yield? what is the expected capital gains yield?
Leasing is common form of asset financing : Leasing is a common form of asset financing. Why is leasing such a popular form of financing for many businesses?
What is nominal yield to maturity-nominal yield to call : A firm's bonds have a maturity of 10 years with a $1,000 face value, What is their nominal yield to maturity? What is their nominal yield to call?
Assume that the yield to maturity remains constant : Assume that the yield to maturity remains constant for the next 4 years. What will the price be 4 years from today?
The total cost to twitter of the equity issue : What is your best guess as to the total cost to Twitter of the equity issue?
Corporation is expected to pay the dividends : Far Side Corporation is expected to pay the following dividends over the next four years: $14, $9, $7, and $4.
Find the present value of in the future under conditions : Find the present value of $200 due in the future under each of these conditions: 4% nominal rate, semiannual compounding, discounted back 6 years.
What is the present value : What is the present value of a $700 perpetuity if the interest rate is 5%? what would its present value be?
Relationship between financial distress-investment growth : Discuss relationship between financial distress, investment growth, managerial ownership, liquidity and profitability of firm with derivatives usage of firm.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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