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ollegr [7]
3 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]3 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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Colorado Mountain Mining paid $ 896,900 for the right to extract mineral assets from a 500,000​-ton deposit. In addition to the
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Answer:

(a) The asset would be recorded in accordance to IAS 16 Property, plant & equipment.

Dr  Mining Asset   896,900

Cr       Bank                     896,900

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DLW, Inc just started its business. DLW purchased factory equipment for $800,000 on January 1. It is estimated that the equipmen
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Answer:

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Explanation:

Giving the following information:

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Answer:

$22,750

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Data provided

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The computation of the total amount of manufacturing overhead cost is shown below:-

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