Calculate gross proceeds per share

Assignment Help Financial Management

Reference no: EM131620333

Howett Pockett, Inc., plans to issue 10.4 million new shares of its stock. In discussions with its investment bank, Howett Pocket learns that the bankers recommend a net proceed of $34.60 per share and they will charge an underwriter’s spread of 5.5 percent of the gross proceeds. In addition, Howett Pockett must pay $3.8 million in legal and other administrative expenses for the seasoned stock offering.

Calculate the gross proceeds per share. (Round your answer to 2 decimal places.)

Gross proceeds $ per share

Calculate the total funds received by Howett Pockett from the sale of the 10.4 million shares of stock.(Enter your answer in millions of dollars rounded to 3 decimal places.)

Funds received by Howett Pockett $ m

Reference no: EM131620333

Questions Cloud

Investing cash flows? affect : Investing Cash Flows? affect. Under the direct? method, the only section that differs from the indirect method is the financing activities section.

Marketing and finance might have conflicting agendas : Given that Marketing and Finance might have conflicting "agendas",

Value of the synergistic benefits from the merger : what is the minimum estimated value of the synergistic benefits from the merger?

What is price of the call option : The risk-free rate is 5 percent per year, compounded continuously. If the exercise price is $0, what is the price of the call option?

Calculate gross proceeds per share : Howett Pockett, Inc., plans to issue 10.4 million new shares of its stock. Calculate the gross proceeds per share.

What was an investor effective annual return : What was an investor’s effective annual return over this two year period?

Calculate the net proceeds to renee from the sale of debt : Renee’s Boutique, Inc., needs to raise $58.17 million to finance firm expansion. Calculate the net proceeds to Renee’s from the sale of the debt.

Expected return and the standard deviation of security : What is the expected return and the standard deviation of Security Y?

What range of discount rates should company accept project : A three-year project requires an initial investment of $500,000, Over what range of discount rates should the company accept the project?

User Account

All Pages