Calculate the gross proceeds per share

Assignment Help Financial Management
Reference no: EM132004408

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: EM132004408

Questions Cloud

Provide journal entires required for rubio for the purchase : Rubio didn't sell $20,000 of the inventory at transfer price. Provide journal entires required for Rubio for the purchase and 2013 and 2014 year-ending entries
What is the company weight of debt-aftertax cost of debt : Bonaime, Inc., has 6.2 million shares of common stock outstanding. What is the company’s aftertax cost of debt? What is the company’s weight of debt?
Purchase requisition and the purchase order steps : Provide an explanation as to why you think it might be a good idea to separate the purchase requisition and the purchase order steps in the procure-to-pay
What percentage came from eurasia-africa : 1) On page 143. Of the consolidated company's total net operating revenues in 2017, calculate:
Calculate the gross proceeds per share : Howett Pockett must pay $3.8 million in legal and other administrative expenses for the seasoned stock offering. Calculate the gross proceeds per share.
Prepare the consolidation entries using the equity method : On January 1, 2013, Thunder Corp acquired 80% of Baldwin Corp. Prepare the consolidation entries using the equity method
What is the net value of the payments vs receipts : What is the net value of the payments vs. receipts in today's dollars?
Market systems contribute to its success as a retail : How do its economy, government regulations, and market systems contribute to its success as a retail environment?
What percentage of the gross proceeds is the investment bank : What percentage of the gross proceeds is the investment bank charging Harper’s Dog Pens for underwriting the stock issue?

Reviews

Write a Review

Financial Management Questions & Answers

  Has dollar bill financing cycle improved or declined

DOLLAR BILL'S, a retail store in New York City, buys its inventory on credit. Has DOLLAR BILL’S financing cycle improved or declined?

  Example of financially irrational behavior

Which one of these is an example of financially irrational behavior? An overconfident investor will tend to:

  At a required return of percent should the firm accept

What is the payback period for the following set of cash flows? (Round your answer to 2 decimal places, e.g., 32.16.)

  Assume that the pure expectations theory

Suppose the interest rate on a 1-year T-bond is 5.00% and that on a 2-year T-bond is 5.40%. Assume that the pure expectations theory is NOT valid, and the MRP is zero for a 1-year T-bond but 0.40% for a 2-year bond. What is the yield on a 1-year T-bo..

  What percentage of your invest able funds

what percentage of your invest able funds would you allocate to what categories (must equal 100%). Why?

  What is the total cost savings can be realized

What's the total cost savings can be realized? Suppose the intermediary bank gains profit of 0.1%, redo the above problem (2)?

  What is expected free cash flow from taking the project

Strabler Motorcycle Company is evaluating a project in which there is a 40 percent probability of revenues totaling $3,000,000 and a 60 percent probability of revenues totaling $1,000,000. Its cash expenses will be $1,000,000 million while depreciati..

  What is the value at risk

A 4-year note with annual coupon payments has a face value of $1,000 and duration of 3.65. It sells for $1012.45 and yields 5.21%. The average monthly change In the yield Is 0 basis points and the standard deviation of such changes is 23 basis points..

  How would you react to this proposal

If you were the owner of a firm employing fifty people and had a qualified pension plan, how would you react to this proposal?

  What is the stock current intrinsic stock price

A company is expected to have free cash flows of $4.4 million next year. The weighted average cost of capital is WACC = 9.2%, and the expected constant growth rate is g = 5.8%. The company has $2 million in short-term investments, $2 million in debt,..

  Divestiture that results in an operating unit

A divestiture that results in an operating unit becoming an independent company is a? ________.

  According to the general dividend valuation model

According to the general dividend valuation model, a firm that reinvests all its earnings and pays no cash dividends can still have a common stock value greater than zero. How is this possible?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd