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Reil [10]
3 years ago
9

Braynerd Chemicals sells 40 million shares of stock in an SEO—25 million being primary shares issued by the company and 15 milli

on being secondary shares sold by investors in the company. At the time of the sale, Braynerd's stock was selling at $21.00 per share. If the underwriter charges 5% of the gross proceeds as a fee, how much money was raised in the sale?
Business
1 answer:
Bezzdna [24]3 years ago
8 0

Answer:  $498.75‬ million

Explanation:

Of the 40 million shares sold by Braynerd Chemicals, 15 million were sold as secondary shares by investors in the company. The proceeds from these 15 million will therefore not go to the company but to the investors so they are not counted.

Gross total money raised will be;

= 25 million * 21.00

= $525 million

The Underwriter charges 5% of the gross amount as a fee so the Net amount raised will be;

Net Total = 525 * ( 1 - 5%)

Net Total = $498.75‬ million

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Hsu Company reported the following on its income statement: Income before income taxes $302,634 Income tax expense 90,790 Net in
7nadin3 [17]

Answer:

5.79  times

Explanation:

The times interest earned ratio tells us the number of times the company's made earnings in multiple of its debt interest obligation.

The formula for times earned interest ratio is the income before interest and taxes divided by the interest expense.

income before tax is $302,634

income before interest and taxes= $302,634+$63,228=$365,862.00  

times interest earned ratio=$365,862.00/ $63,228= 5.79  times

8 0
3 years ago
If Division Inc. expects to sell 200,000 units in the current year, desires ending inventory of 24,000 units, and has 22,000 uni
Lyrx [107]

Answer:

a) True

Explanation:

Sales = Opening + Production - Closing

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Production = 202,000 Units

Hence, the answer is a. True

4 0
3 years ago
Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of 8,638. The
mina [271]

Answer:

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Explanation:

4 0
3 years ago
A firm engages in a new type of financial transaction that has a material effect on its earnings. An analyst should most likely
slega [8]

Answer:

management has not explained its business purpose

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Since in the question it is mentioned that the firm is engaged in the new financial transaction that contains the material impact on the earnings so this represents that it could be come under the pre existed accounting standards.

Also everyone should be aware of the business purpose plus it is not established for changing off the financial statements

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3 years ago
What is the biggest attraction for business considering enganing in international business?
kvasek [131]
Option D. The size of the market

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3 years ago
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