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lara31 [8.8K]
2 years ago
13

A mid-sized firm plans to issue 10 million shares during an IPO. The underwriter plans to sell shares at $24.45; however, many i

nvestors believe the company should be valued at $34.25 per share. If the underwriter charges a $1.1 million fee to undertake the IPO, how much will the firm raise in the IPO
Business
1 answer:
HACTEHA [7]2 years ago
6 0

Answer:

The answer is "\$243,400,000".

Explanation:

The medium-sized company proposes to issue 10 million IPO shares.

Its Contractor intends to purchase $24.45; this implies cash flows from

\to 10,000,000 \times 24.45= \$244,500,000

When the contractor pays an IPO cost of million, the company shall

In the IPO this would raise  

\to \$186,000,000 - \$1,100,000 = \$243,400,000

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True

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Answer:

A. Using the same format you would use if you were responding in writing

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here the answer should be A that is

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2 years ago
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Answer:

Capitalized Expenditures:

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$20,000

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When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.  

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

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