Wear Ever is expanding and needs $6.8 million to help fund this growth. The company estimates it can sell new shares of stock fo
1 answer:
Answer: 179,811 shares
Explanation:
Given that,
Price of each share = $43
Amount needed for expansion = $6.8 million
Cost incurred for filing and legal fees = $352000
Underwriters have agreed to a spread of 7.5 percent
Now,
Net price after the underwriter spread = $43 × ( 1 - 7.5%)
= $39.775
Total capital needed = Fund needed for growth + Legal and filing fees
= $6,800,000 + $352,000
= $7,152,000
Number of shares sold =
= 179,811 shares
You might be interested in
Answer:
$6745
Explanation:
Given: Beginning inventory is 77 units at the cost of $19 per unit.
Purchased inventory is 476 units at $19 per unit.
Sales during the month is 355 units at $45 per unit.
Now, let´s find the cost of goods sold using LIFO method.
We know, LIFO method is Last in first out, which sell out inventory, which are most recently purchased. In a period of rising prices, LIFO inventory method tends to give the highest reported cost of goods sold.
As sales unit is 355 units.
Let´s take units from recent purchased inventory.
Cost of good sold=
Hence, the cost of goods sold using the LIFO method is $6745.