What are the net proceeds to the firm

Assignment Help Financial Management
Reference no: EM13941522

Raybac is about to go public. Its present stockholders own 470,000 shares. The new public issue will represent 810,000 shares. The shares will be priced at $35 to the public with a 14% spread. The out-of pocket costs will be $580,000. What are the net proceeds to the firm?

Reference no: EM13941522

Questions Cloud

Described the trend in juvenile delinquency : Described the trend in juvenile delinquency and analyzed the impact of the work being done by the Office of Juvenile Justice and Delinquency Prevention (OJJDP).
Discuss the pitfalls in finding the will of god : Describe the pitfalls in finding the will of God for and in your life - Discuss the pitfalls in finding the will of God
Calculated you capital cash flows : Your company is out of cash at the end of 2014. You have a credit line from which you can borrow throughout the year. You have calculated you capital cash flows will be –910,000 for 2015. You will borrow to cover your cash needs for both operations a..
How has research been conducted in the literature : How has research been conducted in the literature? How extensive has it been? What kinds of data have been presented? How pertinent are they? Are there sufficient amounts of data? Do they adequately answer the questions?
What are the net proceeds to the firm : Raybac is about to go public. Its present stockholders own 470,000 shares. The new public issue will represent 810,000 shares. The shares will be priced at $35 to the public with a 14% spread. The out-of pocket costs will be $580,000. What are the ne..
Write an application that plays "guess the number" : Write an application that plays "guess the number" as follows: Your application chooses the number to be guessed by selecting an integer at random in the range 1-1000. The application then displays the following in a label
What is the aftertax cost of debt and WACC : Mullineaux Corporation has a target capital structure of 64 percent common stock, 9 percent preferred stock, and 27 percent debt. Its cost of equity is 13.4 percent, the cost of preferred stock is 6.4 percent, and the cost of debt is 8.1 percent. The..
Find of significant value in helping understanding concepts : How has your perspective about the different types of early juvenile institutions changed during these years? How have your impressions of the core components of the early juvenile institutions changed since the beginning of the week?
The annuitys first payment occurs six years : What is the value today of a 15-year annuity that pays $580 a year? The annuity’s first payment occurs six years from today. The annual interest rate is 10 percent for Years 1 through 5, and 12 percent thereafter.

Reviews

Write a Review

Financial Management Questions & Answers

  Trying to determine its cost of debt

Drogo, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 14 years to maturity that is quoted at 104 percent of face value. The issue makes semiannual payments and has an embedded cost of 8 percent annually. Wha..

  Contribute an equal amount on a yearly basis

Suppose you will need $50,000 in 4 years to start up a new business you have planned. With a 5% real interest rate, how much do you have to invest now in order to achieve this goal? but assume you can contribute an equal amount on a yearly basis. How..

  What is the annual effective yield on the second bond

A company has liabilities of 2000 and 5000 due at the end of years one and three respectively. The investments available to the company are two zero coupon bonds. The First one-year 1000 par value bond with an annual effective rate of 5.6%. The secon..

  How purchase of the apple press might affect

How purchase of the apple press might affect the company revenue goals - return on investment for new capital investments and the company uses a cost of capital of 8.

  About the retirement plan

You are considering your retirement, and would like to have accumulated $1,839,829 by the time you retire in 27 years. If you anticipate that your average compounded rate of return over the 27 years until retirement will be 12%, how much will you nee..

  What was the annual percentage increase

The value of a house is estimated to be 80000 today, if it has increased in value by 7 percent per year for the last 10 years, what was the value 10 years ago? If the house had increased in value by 48 percent over the total 10=year period, what was ..

  The great depression that began in the usa in 1929 saw a

the great depression that began in the usa in 1929 saw a collapse in the financial markets with significant economic

  Once observation is identified by internal auditor

Once an observation is identified by an internal auditor as a fraudulent act committed by senior mgt. resulting in an amount considered insignificant and trivial, it should be: reported to senior management. reported to the independent outside audito..

  What is the market price of this preferred stock today

High Towers has an issue of preferred stock outstanding with a par value of $200. It pays an annual dividend equal to 10 percent of par value. If the required return on High Towers preferred stock is 5 percent, and if the company pays its next divide..

  Why will total return rise when rates fall

Suppose that you own a callable U. S. agency bond like that in Exhibit 16.9. Explain why your total return will fall when interest rates rise. Identify changes in return associated with each component of total return. Why will total return rise when ..

  Analyse the two payment possibilities

The financial advisors of RBM suggests that the cost of funds to evaluate the proposals is eight per cent. Analyse the two payment possibilities and determine which one you would accept as a manager of RBM.

  Differences between warrants and convertibles

Which of the following statements is most CORRECT with respect to the similarities and differences between warrants and convertibles?

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