1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
strojnjashka [21]
3 years ago
7

A mid-sized firm plans to issue 10 million shares during an IPO. The underwriter plans to sell shares at $22.55; however, many i

nvestors believe the company should be valued at $30.25 per share. If the underwriter charges a $2.0 million fee to undertake the IPO, how much will the firm raise in the IPO
Business
1 answer:
lapo4ka [179]3 years ago
8 0

Answer: $223,500,000

Explanation:

An Initial Public Offering is the first issuance of a Company's stock to the world. It is usually done through an Investment bank that underwrites the issuing and sells it at a price that they feel is right based on their Research.

In this scenario, the Underwriter thinks the amount that the stock should be offered at is $22.55 and so that is the price it will be offered at.

10,000,000 shares are to be offered.

$2,000,000 is to be taken as fees by the Underwriter.

The total money the company will make will therefore be,

= ( No. Of shares offered * Share Price) - Underwriting Fee

= (10,000,000 * 22.55) - 2,000,000

= 225,500,000 - 2,000,000

= $223,500,000

You might be interested in
True or false: production runs can be scheduled in one or two shifts.
irina1246 [14]
The answers are as follows:
1. TRUE.
Shift schedule is a practice used in manufacturing industries to increase the numbers of hours that is used in production process. The shift divides the hours in the day into specific period and assign teams that will work during each period. The shift practice is usually employed in production run in order to ensure efficient use of all resources during the production process. Production run are typically schedule into one or two shifts; which may be during the day alone or during the day and night.
2. FALSE
Hiring the needed complement will eliminate OVERTIME, not the second shift. Hiring the needed complement usually remove the need for all overtime. Hiring the needed complement will make having a second production run team possible and this second team can handle the production process that ought to be done through overtime.
3. FALSE.
It is the duty of the management to strive to DECREASE STAFF TURNOVER.
Staff turnover refers to the rate at which employees are leaving a company and new employees are been absorbed. High staff turnover will make the company to spend more money on resources and training of new staffs.  
4. TRUE.
During periods of high demand, production usually increases and more workers are hired. Instead of hiring more workers, a company that has two production shifts may decide to add more workers to the first shift in order to increase the amount of work that could be done. This will result in the decrease in the number of the workers in the second shift.
5. FALSE
Increasing training hours decreases needed complement. Increasing the training hours will equip the workers with the needed knowledge which will make them more effective and productive. This will decreases the complement needed for the production process.
6. RECRUITING COST [B].
In a situation where a company has to hire more workers to the one it already has on ground as a result of increased production, then the company will have to spend extra money in the process of recruiting the needed workers.
7. DECREASE [B]
If the productive index is already at 100%, adding overtime will decreases the productivity index. This is because, overtime has a way of reducing the efficiency and the productivity of the workers, thus decreasing the amount of work done by them.
8. FALSE.
Workers training is entered in hours. The amount of training received by workers are measured in hours. The higher the training hours, the higher the amount of training which a worker has undergone and the higher will be the value of that worker to the company.
9. C
Each company is expected to have a base amount of $1,000 for each new worker that is hired. The company may decide to eliminate all other recruiting costs but this base amount can not be eliminated.
10. SEPARATION COST [C].
Separation cost are incurred when production level decreases and/ or automation level increases.
Separation cost refers to the cost that is needed to lay off an employee from an organisation. When the production level decreases or the company decide to automate their production processes, then some workers will have to be sacked and these workers have to be paid some money before they leave the company. This result in increase in the amount of money that the company will spend on separation cost.
8 0
3 years ago
Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $127,000.
Brut [27]

Answer:

b. $31,000

Explanation:

The computation of the depreciation expense using the straight-line method for the second year is shown below:

= (Original cost - residual value) ÷ (useful life)  

= ($127,000- $3,000) ÷ (4 years)  

= ($124,000) ÷ (4 years)  

= $31,000

Hence, the correct option is b. $31,000

The units are to be ignored as the method i.e used is straight line so the same is to be considered

6 0
4 years ago
Net income is​ ________.
trapecia [35]
Hello! the answer to your question is D. Net income is the accounting profit from the operations of the company during the period.
8 0
3 years ago
Why do you think it will be important to stay flexible if your goals change as you get<br> older?
Svetradugi [14.3K]

Answer:

You will feel stronger once you gain a bit of flexibility, simply because that flexibility gives you the range of motion to let your muscles work more efficiently. Maintaining flexibility will aid in muscle and joints health, which can keep older adults doing their favorite daily activities and remain independent.

6 0
3 years ago
Shawn works 40 hours a week as a store manager. If he made 27040 last year how much was he paid per hour
Klio2033 [76]
First we find out how many weeks are in 1 year:
1 year = 52.1429 weeks

Then we find out how many hours he worked in a year  by multiplying the number of hours he worked by the number of weeks there are in a year:
40 hrs/week x 52.1429 hrs/year = 2,085.716 hrs

Finally we divide:
27,040 dollars/year by 2,085.716 hrs

Afterwards we get 12.964372906, or to make it simpler we would round and get 12.96 dollars/hour

So your answer is $12.96 per hour.
7 0
4 years ago
Other questions:
  • What are the main government restrictions on sole proprietorships?
    15·2 answers
  • A sole proprietorship: Multiple Choice provides limited financial liability for its owner. involves significant legal costs duri
    15·1 answer
  • Should underperforming restaurants be closed or sold?
    10·1 answer
  • Can someone assist with my question.... really important, semester coming up soon. Thank you in advance
    11·1 answer
  • Presented here are long-term liability items for Skysong, Inc. on December 31, 2017.
    13·1 answer
  • Which of the following statements is​ FALSE? A. When computing the incremental earnings of an investment​ decision, we should in
    11·1 answer
  • What would happen if your boss at the bookstore asked you to decrease some of the business' variable costs
    14·1 answer
  • Most of the procedural, or due process, rights given to criminal suspects or defendants in the United States are found in
    13·2 answers
  • An author's audience refers specifically to
    15·1 answer
  • You have just been elected to public office and you have been informed that the government does not have money to pay all of its
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!