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ollegr [7]
4 years ago
11

Neutrino Industries stock trades at $49 per share and there are 120 million shares outstanding. The management would like to rai

se $400 million in an SEO. If the underwriter charges 6% of gross proceeds, how many shares must it sell?
Business
1 answer:
Gelneren [198K]4 years ago
4 0

Answer:

Neutrino Industries must sell <u>8.68 million shares</u> to raise $400 million.

Explanation:

To calculate this, let B represents the number of shares Neutrino Industries must sell. Therefore, we have:

Gross proceeds = $49 * B, or $49B

Underwriter charges = 6% * $49B = $2.94B

To raise $400 million, we deduct the underwriter charges from gross proceeds and solve for B as follows:

$49B – $2.94B = $400,000,000

$46.06B = 400,000,000

B = 400,000,000 / 46.06

B = 8,684,324.79 shares, or 8.68 million shares.

Therefore, Neutrino Industries must sell <u>8.68 million shares</u> to raise $400 million.

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3. Which of the following is not a characteristic of a service? (1 point)
Alona [7]

Answer:

marketability is not correct

Explanation:

Four characteristics of service are;

intangibility,

inseparability,

variability and.

perishability.

6 0
3 years ago
Read 2 more answers
Assume the following: Pre-tax return = 14.5% Tax rate = 25% Inflation rate = 4% What is your real return?
Colt1911 [192]

Answer:

6.875%

Explanation:

In order to compute the real return, first, we have to determine the after-tax return which is shown below:

After-tax return = Pre-tax return - tax rate of Pre-tax return

                          = 14.5% - 25% × 14.5%  

                          = 14.5% - 3.625%

                          = 10.875%

And, the inflation rate is 4%

So, the real return would be

= 10.875% - 4%

= 6.875%

3 0
3 years ago
Answer the question on the basis of the following data for the hypothetical nations of Alpha and Beta. Qs is domestic quantity s
bezimeni [28]

Question Completion:

Domestic Market for Steel, Alpha

Qs P Qd

60 5 10

40 4 20

30 3 30

20 2 40

10 1 50

Domestic Market for Steel, Beta

Qs P Qd

80 5 20

70 4 30

60 3 40

50 2 50

40 1 60

Answer:

Assuming that Alpha and Beta are the only two nations in the world, at the equilibrium world price:

Beta will export steel and Alpha will import steel.

Explanation:

a) Data and Calculations:

Domestic and World Market for Steel

Alpha                   Beta           World Market

Qs    P      Qd       Qs    P      Qd       Qs    P       Qd  

60    5        10       80    5       20      140    5       30

40    4       20       70    4       30       110     4       50

30    3       30       60    3       40       90     3       70

25   2.50  35       55    2.50  45       80    2.50  80

20   2       40       50    2       50        70    2       90

10   1       50        40    1        60       50     1       110

b) In the world market, equilibrium will occur at a price of $2.50, when the quantity supplied and demanded will be 80.  At this equilibrium price of $2.50, Alpha will supply 25 units, and Beta will supply 55 units.  Alpha will demand 35 units, and Beta will demand 45 units.  This implies that Beta will supply more than its demand for steel, while Alpha will supply less.  Therefore, Beta will export steel and Alpha will import steel.

4 0
4 years ago
Most investors will not give your company money unless you have what?
Oduvanchick [21]
Unless you have a Business Plan.

Business plan contain your Objectives and step by step strategy that you will do in order to expand your Company.

Showing in front of investors without it make them questioned your commitment as a future Partner. To put it simply, you look like a careless & unmotivated person that is really bad for business
5 0
3 years ago
A nonaffiliated owns 3% of an issuer's common stock. This person will be considered a control person if a spouse owns A) 8% of t
Studentka2010 [4]

Answer:

Option A. 8% of the issuer's common stock

Explanation:

If the accumulated ordinary share holding by the immediate family members is 10% or more than 10% then all the immediate family members who own ordinary shares of this company are considered control persons. This is because they can influence the decision making of the company and thus these personels are often termed as control person as they have some control of the company.

5 0
3 years ago
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