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KIM [24]
3 years ago
12

The Whistling Straits Corporation needs to raise $74 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 $45 per share and the company's underwriters charge a spread of 6 percent. If the SEC filing fee and associated administrative expenses of the offering are $825,000, how many shares need to be sold? (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to the nearest whole number, e.g., 1,234,567.)
Business
1 answer:
TEA [102]3 years ago
4 0

Answer:

1,768,913 new stocks

Explanation:

the company needs to raise amount needed to finance expansion plus SEC's filing and administrative fees = $74,000,000 + $825,000 = $74,825,000

net amount received per stock issued = stock price x (1 - underwriting fee) = $45 x (1 - 6%) = $42.30 per stock

the company needs to issue = $74,825,000 / $42.30 per stock = 1,768,912.53 = 1,768,913 new stocks

You might be interested in
Which of the following is most likely to occur as you add randomly selected stocks to your portfolio, which currently consists o
jarptica [38.1K]

Answer: b. The diversifiable risk of your portfolio will likely decline, but the expected market risk should not change.

Explanation:

Diversifiable risk is a risk that a particular security has or which can be seen in a certain sector. Market risk occurs when there's possibility that a particular investor will make loss due to certain factors which affects the entire market.

In the above scenario, the most likely to occur will be that the diversifiable risk of the portfolio will likely decline, but the expected market risk should not change.

It should be noted that diversification won't eliminate market risk. When more stocks are added, this brings about decline in diversification risk but market risk won't change.

5 0
3 years ago
Using examples explain what inputs eBay might be using in conducting its business . What are eBay outputs ?
lawyer [7]
Typically, a simple way to think of an input is anything that costs money. These can be both good and bad things. A simple example would be: if I had a machine that made candy: my inputs would be the energy required to run the machine, the person required to work the machine, and the ingredients I had to put in to make the candy. My outputs might be the candy the machine made and the happiness it gave to people who ate it. A negative output might be that it made people unhealthy. 

As an internet company eBay does not have many of the typical inputs of doing business. For example, it does NOT have the cost of physical stores nor does it have the cost of depreciating inventory or any machines. For eBay, some examples of inputs would be it's people such as software engineers, marketing team, and executive staff. All overhead such as office space and the electricity to power its office space would be another example. Other examples could include the physical code behind eBay's software and money used to finance the company, and the data warehouses used to store everything. 

Outputs can be thought of as the value a company creates. eBay's outputs are also somewhat atypical. eBay does not create a physical product that they then sell so that makes this a challenging question. You could argue that eBay's store or its platform is an output. All the data it produces as a company is an output and has a lot of value. Since eBay allows people across the world to open up their own store online, you could say it's creating the social good of jobs or entrepreneurship "global employment" through this action (eBay has supported this publicly as well so you could look up more about it on Google). Another output could be eBay stores created by sellers. eBay owns PayPal so if you can think of any related to PayPal you could include those as well and cite that eBay owns the company. 

Hope that helps
8 0
3 years ago
1. The ratio of the money earned on an investment relative to the amount of the investment.
liraira [26]

i dont know high school

7 0
3 years ago
Only 3 days left! 50 POINTS! Agriculture, Food, and Natural Resources Workplaces and Tasks
denis-greek [22]

Answer:

Hey,

Thanks for your question but none of the links have been provided. Please provide the appropriate links

4 0
2 years ago
Read 2 more answers
Moyas Corporation sells a single product for $10 per unit. Last year, the company's sales revenue was $310,000 and its net opera
MissTica

If fixed expenses totaled $108,000 for the year, the break-even point in unit sales was:21, 600 Units

Explanation:

The Break Even Point in units is 21,600units.

We follow the below  steps in order to arrive at the answer:

First we find Total variable costs of Moyas Corporation

<u></u>

<u>Net operating income=Sales-variable cost-Fixed cost</u>

47000=310000-variable cost-108000

Variable cost=310000-108000-47000

Variable Cost=155000

<u>Next we find the number of units sold</u>

<u>No:of unit sold= Total Sales/Selling price per unit</u>

No:of unit sold =310000/10=31,000

<u>Then we find Variable Cost per unit</u>

<u>Variable cost per unit=Total Variable cost/Number of unit sold</u>

Variable cost per unit=155000/31000=5

<u>We calculate Contribution Margin per unit </u>

<u></u>

<u>Contribution Margin per unit =Selling price per unit-Variable cost per unit</u>

<u />

Contribution Margin per unit = 10-5= 5

<u></u>

<u>Finally we calculate Break Even Point (BEP) in units as:</u>

<u>BEP=</u><u>Fixed cost per unit/</u>Contribution Margin per unit

BEP=108,000/5=21600 Units

<u></u>

<u></u>

6 0
3 years ago
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