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Stella [2.4K]
3 years ago
9

The Whistling Straits Corporation needs to raise $70 million to finance its expansion into new markets. The company will sell ne

w shares of equity via a general cash offering to raise the needed funds. The offer price is $30 per share and the company's underwriters charge a spread of 8 percent. If the SEC filing fee and associated administrative expenses of the offering are $575,000, how many shares need to be sold
Business
1 answer:
viktelen [127]3 years ago
7 0

Answer:

2,557,065 shares

Explanation:

Offer price = $30 per share

Underwriters Charge : 8%

If the company's underwriters sells new shares at the $30 per share issue price, Whistling straits corporation will receive:

offer price x (1 - underwriters charge)

= $30 × (1 - 0.08) = $27.60

The number of shares that needs to be sold will be:

\frac{amount needed + administrative expenses}{27.60}

\frac{70,000,000 + 575,000}{27.60}

= 2,557,065.217

≈ 2,557,065

Therefore number of shares to be issued will be = 2557065 shares

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Answer:

False

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Studies of mutual fund performance indicate that mutual funds that outperformed the market in one time period usually do not beat the market in the next time period.

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3 years ago
PB4.
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Answer:

Explanation:

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4 0
2 years ago
Sandy Fiero works as the Chief Knowledge Officer for Bend Lumbar Company. She has been given the responsibility to create a prod
Umnica [9.8K]

Answer:

A.The primary value activity outbound logistics.

Explanation:

Outbound logistics is the process of delivering the products to customers. In this process companies need to have a good shipping and delivery system that ensure that  the customers receive the product in a timely manner and in good conditions. So, in this case when Sandy Fiero decides to create a service that offers free next day shipping on any order over $50, she is adding value to the outbound logistics.

5 0
2 years ago
For an activity base to be useful in cost behavior analysis: a) there should be a correlation between changes in the level of ac
lubasha [3.4K]

Answer:

Option A is the correct one

Explanation:

Among the various options given in question statement, option A is correct

Cost behavior analysis is done make management comprehend the impact of various costs change versus changes in activities in various levels of the company. This may involve direct materials, direct labor, and overhead costs. Hence if there is no correlation between changes in the level of activity and changes in costs, then such analysis wont be an effective cost behavioral analysis

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3 years ago
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A corporation​ ________. A. can use straightdash-line depreciation method for tax purposes and MACRS depreciation method financi
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The correct answer is B. can use different depreciation methods for tax and financial reporting purposes.

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