User Account

All Pages

What were flotation costs as a fraction of funds raised

Assignment Help Financial Management
Reference no: EM131164317

Moonscape has just completed an initial public offering. The firm sold 5 million shares at an offer price of $10 per share.

The underwriting spread was $.40 a share.

The price of the stock closed at $15 per share at the end of the first day of trading.

The firm incurred $500,000 in legal, administrative, and other costs.

What were flotation costs as a fraction of funds raised?

(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Reference no: EM131164317

Questions Cloud

What is an ultra vires act : What is an Ultra Vires act within the context of corporate action? What remedies, if any, are available to innocent shareholders who played no role in the Ultra Vires act? What liabilities, if any, exist for a corporation or an individual actor ..
Despite the emergence of new communication : Traditional advertising has a continued prominence in the communications landscape despite the emergence of new communication options such as social networks.
What advice do you have for the project manager : What advice do you have for the project manager? How likely does it seem that Pete will achieve his desired goals of being on time and within budget if nothing is done?
Prepare a test plan for the test of the option code field : The valid option codes are four-character alphabetic codes and should be matched against a list of valid codes. Prepare a test plan for the test of the option code field during data entry.
What were flotation costs as a fraction of funds raised : Moonscape has just completed an initial public offering.- What were flotation costs as a fraction of funds raised?
Plot the variation of pressure with radius : Plot the variation of pressure with radius from the center. There is no elevation change.
What kinds of issues would you have to address to make sure : Implementing Target was a major undertaking for a number of reasons. If you were an analyst on the project, what kinds of issues would you have to address to make sure the conversion happened successfully?
Stage of the decision-making process : A manager is determining what kind of new computers she should purchase for her department. She has made a list of five different computer models for consideration. Which stage of the decision-making process is this?
What do you see in terms of trade distribution : Describe how the world has changed in terms of global trade in the past 10 years. Why do you think developed countries such as the United States, Japan, Germany, and England will face in terms of competition from emerging markets? What do you see ..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the cost of equity of this firm

Suppose the Simmons Co's common stock has a beta of 1.37, the risk-free rate is 3.4 percent, and the market risk premium is 8.2 percent. The yield to maturity in the firm’s bonds is 7.6 percent and the debt-equity ratio is .45. What is the cost of eq..

  If company has constrained capital

If a company has constrained capital, then it can only take on a limited number of projects. The NPV decision criterion is true when all projects are independent and the company has a sufficient source of funds to accept all positive NPV projects. Tw..

  Order to finance the aforementioned

You have the following information. In 10 years and in 15 years you will send your two nephews to attend school. The tuition now is $10,000 but will grow at 7% per annum. You will retire in 40 years and be in retirement 35 years. You will need $60,00..

  Issued stock dividends during the current period

For this discussion, assume the role of an investor. How would you know whether the company you are considering to invest in has repurchased any of its own stock and/or issued stock dividends during the current period? Why is this important, and woul..

  Period of depressed earnings performance

Excel Corporation has recently witnessed a period of depressed earnings performance. As a result, cash dividend payments have been suspended. Investors do not anticipate a resumption of dividends until 2 years from today, when a yearly dividend of $0..

  Require an effective annual interest rate

You are considering a 20-year, $1,000 par value bond. Its coupon rate is 9%, and interest is paid semi-annually. If you require an "effective" annual interest rate (not a nominal rate) of 10.59%, how much should you be willing to pay for the bond? Do..

  Stock price does not change over the life of the option

You have purchased a put option on Pfizer common stock. The option has an exercise price of $40 and Pfizer’s stock currently trades at $42. The option premium is $0.70 per contract. What is your net profit on the option if Pfizer’s stock price does n..

  Capital structure-Find the WACC

Aberdeen Company has the following capital structure. The risk-free rate is 5% and the expected return on the market is 12%. The tax rate of Aberdeen is 32%. Find the WACC of Aberdeen.

  Mature manufacturing firm-what will you pay for share today

Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $8.90, but management expects to reduce the pay out by 4 percent per year indefinitely. If you require a return of 14 percent on this stock, what will you pay for a sha..

  What is the implied forward rate six months hence

Suppose the spot price of gold is $1200 per ounce. The futures price for delivery in six months is $1208, while the futures price for delivery in one year is $1214. The interest rate on 6-month loans is 1.00percent (on an annual basis).

  What is expected value of each quarterly dividend payment

James River Corp has preferred stock outstanding that trades at $125. If the stock yields 8%, what is the expected value of each quarterly dividend payment?

  Taking into account the down payment as well

You have saved $6000 for a down payment on a new car. The monthly payment you can afford is $410. You will make payments for 48 months (starting 1 month from today). If the relevant interest rate is 0.60% per month (this is an Effective Monthly Rate)..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd