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allsm [11]
3 years ago
10

The Beranek Company, whose stock price is now $30, needs to raise $13 million in common stock. Underwriters have informed the fi

rm's management that they must price the new issue to the public at $25 per share because of signaling effects. The underwriters' compensation will be 6% of the issue price, so Beranek will net $23.50 per share. The firm will also incur expenses in the amount of $165,000. How many shares must the firm sell to net $13 million after underwriting and flotation expenses
Business
1 answer:
Bumek [7]3 years ago
5 0

Answer:

858,085 shares must be sold

Explanation:

Net amount to be raised                   $ 13,000,000

Add: floatation expenses                           165,000

Amount to be available after

payment of underwriting compensation             20,165,000          

No of shares to be issued at 23.50 $      = 20,165,000/23.50 =  shares, rounded off to 858,085 shares.

858,085 shares must be sold

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wel

Answer:

bruh ok look its A

Explanation:

because this fool just got me wrong

7 0
4 years ago
Wilma is a salesperson with Broker Fred. Wilma arranges for a listing with a seller. When Fred accepts the listing, a contract a
bazaltina [42]

The relationship between Wilma and the seller is called a sub-agent relationship

<h3>What is a sub-agent relationship?</h3>

A sub-agent relationship happens when the agent or broker brings a buyer to purchase a property from him whereaS he is not the property's listing agent.

In conclusion, the relationship between Wilma and the seller is called a sub-agent relationship

Read more about sub-agent

<em>brainly.com/question/25325640</em>

5 0
2 years ago
Finance tattletale news corp. has been growing at a rate of 20% per year, and you expect this growth rate in earnings and divide
alexira [117]

Answer:

$1.81

Explanation:

we must use a combination of non-constant growth formula and the Gordon growth model to determine the price for the stocks in year 0 and year 1:

stock price year 0 = ($2.40 / 1.15) + ($2.88 / 1.15²) + ($3.456 / 1.15³) +[$4.1472 / (15% - 4%)] / 1.15⁴ = $2.09 + $2.18 + $2.27 + $21.55 = $28.09

stock price year 1 = ($2.88 / 1.15) + ($3.456 / 1.15²) +[$4.1472 / (15% - 4%)] / 1.15³ = $2.50 + $2.61 + $24.79 = $29.90

capital gain between year 0 and year 1 = P1 - P0 = $29.90 - $28.09 = $1.81

*All answers have been rounded to the nearest cent.

5 0
3 years ago
Read 2 more answers
On January 1, a company issues bonds dated January 1 with a par value of $200,000. The bonds mature in 3 years. The contract rat
Alexandra [31]

Answer:

b. $194,492

Explanation:

Note: The  present value factors is attached as picture below

Multiple Choice <em>$205,607.  $194,492.  $200,000.  $22,032.  $172,460.</em>

<em>00,000 </em>

Calculation of Bond issue price                        

                                                           PV factor at 2.50%

Pv value of bond               200,000             0.8623                 172,460

Pv of interest at 2%, 6       4,000                  5.5081                  <u>22,032</u>

semi annual installment

Present value of the Bond                                                        <u>$194,492</u>

5 0
3 years ago
Your grandfather likes to tell the story about how he started with 50 head of cattle on his ranch and grew the ranch to 1,000 he
koban [17]

Answer:

31.43 years

Explanation:

The number of years can be calculated using growth rate formula

yf = yi ( 1 + r) ^ t where yf is the final population, yi is the initial population, r is the rate in % and t is the number of years

yi = 50, yf = 1000, r = 10% and t = ?

substitute the values into the formula

1000 = 50 ( 1 + (10/100)) ^ t

divide both side by 50

1000/ 50 = 1000/50 ( 1.1) ^t

20 = (1.1) ^t

take log of both side

log 20 = t log 1.1  ( remember log a^b = b log a)

divide both side by log 1.1

log 20 / log 1.1 = t

t = 31.43 years

8 0
4 years ago
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