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Serjik [45]
3 years ago
12

The Presley Corporation is about to go public. It currently has aftertax earnings of $6,500,000, and 3,000,000 shares are owned

by the present stockholders (the Presley family). The new public issue will represent 700,000 new shares. The new shares will be priced to the public at $20 per share, with a 5 percent spread on the offering price. There will also be $300,000 in out-of-pocket costs to the corporation. a. Compute the net proceeds to the Presley Corporation. (Do not round intermediate calculations and round your answer to the nearest whole dollar.) Net proceeds b. Compute the earnings per share immediately before the stock issue. (Do not round intermediate calculations and round your answer to 2 decimal places.) Earnings per share c. Compute the earnings per share immediately after the stock issue. (Do not round intermediate calculations and round your answer to 2 decimal places.) Earnings per share
Business
1 answer:
m_a_m_a [10]3 years ago
8 0

Answer:A. Net proceed $13,700,000

($20*700,000)-$300,000

B. Earnings per share $2.17

$6500,000/3,000,000 shared

C. Earnings per share $1.76

$6,500,000/3,700,000 shares

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3 0
4 years ago
On January 8, an applicant filled out an application for a life insurance policy but did not include the initial premium. The in
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Answer: January 26

Explanation:

A life insurance policy is simply a contract that an individual has with an insurance company whereby the individual makes premium and in turn, the insurance company would have to give a death benefit, to the beneficiaries of the insurance policy once the insured dies.

Based on the information in the question, the coverage become effective on January 26 which was the day the policy was delivered and the first premium was collected.

3 0
3 years ago
________ products are less frequently purchased consumer products and services that customers compare carefully on suitability,
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Answer:

A) Shopping products                                          

Explanation:

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4 0
4 years ago
Which type of text alignment will give your document the look of a published book?
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The text alignment is called justified
4 0
3 years ago
The common stock of Auto Deliveries sells for $26.46 a share. The stock is expected to pay $2.00 per share next month when the a
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Answer:

The market rate of return on the stock is 12.55%

Explanation:

Computing the market rate of return on the stock is as:

Selling price of common stock = Expected price per share / (Rate of return [R] - Dividend)

where

Selling price of common stock is $26.46

Expected price per share is $2.00 per share

Dividend is 5.0%

Putting the values above:

$26.46 = $2.0 / (R - 5%)

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R - 0.05 = 0.0755

R = 0.0755 + 0.05

Rate of return = 0.1255 or 12.55%

5 0
3 years ago
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