Calculate total funds received by howett pockett from sale

Assignment Help Financial Management
Reference no: EM131511523

Howett Pockett, Inc., plans to issue 11.7 million new shares of its stock. In discussions with its investment bank, Howett Pocket learns that the bankers recommend a net proceed of $37.20 per share and they will charge an underwriter’s spread of 4.0 percent of the gross proceeds. In addition, Howett Pockett must pay $5.1 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 $ 38.75 per share

Calculate the total funds received by Howett Pockett from the sale of the 11.7 million shares of stock.(Enter your answer in millions of dollars rounded to 3 decimal places.) Funds received by Howett Pockett $

Reference no: EM131511523

Questions Cloud

What is the total value of the company : What is the total value of the company? Not good with the math in this problem and really want to understand
What are the earnings before taxes : If the combined tax rate (T) for the company is 40%, what are the earnings before taxes (EBT)?
Calculate the annual internal rate of return : Calculate the annual Internal Rate of Return (IRR) required on a cash flow of ten annual deposits of $10,000 starting in the beginning of the first year
What’s the loans effective annual rate : What’s the loan’s effective annual rate (EAR)? Why is composition important in everyday life? How is it important in today's society?
Calculate total funds received by howett pockett from sale : Calculate the total funds received by Howett Pockett from the sale of the 11.7 million shares of stock.
Fast-growing firm recently paid a dividend : A fast-growing firm recently paid a dividend of $0.70 per share. what is its value?
Compute the year six future value of deposits made in years : compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,750, $1,950, $1,950, and $2,250.
About the money and banking : How have financial innovations the allow banks to sell off home loans increased the liquidity of home mortgages since the late 1970s?
How asymmetric information may lead to a financial crisis : Discuss how asymmetric information may lead to a financial crisis.

Reviews

Write a Review

Financial Management Questions & Answers

  What is equivalent cost per mile for the new company cars

A company’s technicians do many service calls to their customers’ sites and have been using their own cars, for which the company reimburses them at a rate of $0.56 per mile. A technician travels an average of 35,000 miles per year. If the interest r..

  Which company is likely to have higher financial leverage

Solver Group is a global leader in the Biotechnology industry. Aants is an airline which operates globally. Both Solver and Aants are based in Australia. Which company is more likely to have higher financial leverage?

  What is effective annual interest rate on arrangement

The Delta Fish Hatchery factors its accounts receivables immediately at a discount rate of 1.8 percent. The average collection period is 39 days. Assume all accounts are collected in full. What is the effective annual interest rate on this arrangemen..

  What is the value in year-one dollars

Your beginning salary is 70,000. You deposit 10% each year in a savings account that earns 6% interest. Your salary increases by 5% per year and inflation is 3% per year. What value does your savings account show after 40 years? What is the value in ..

  Explain how locational arbitrage would occur

Assume the following exchange rate quotes on British pounds: - Explain how locational arbitrage would occur. Also explain why this arbitrage will realign the exchange rates.

  What is the breakeven point in units

What is the breakeven point in units? In dollars? What is the contribution margin in percent? In dollars?

  calculate the NPV and BCR for the pool project

The City of Swimfield is building a new pool. The pool will cost $1.5 million to construct in year one. The pool will open in year two and will need another capital investment of $150,000 in year eleven. All costs and benefits accrue at the end of ea..

  Nominal annual yield rate compounded semi-annually

A 10 year bond has semi-annual coupons. The coupon rate is 5% for the first 5 years and 9% for the following 5 years. The bond has face amount of 100 and a redemption amount of 105. Six months before the first coupon, the bond is purchased for 100. C..

  Average ratios to construct a pro forma balance sheet

Use the following industry average ratios to construct a pro forma balance sheet for Carlos Menza, Inc. The company's total assets are $___________(round to the nearest dollar) The company's fixed assets are $___________(round to the nearest dollar) ..

  Loan agreement has payments and inputs

A 100,000 loan agreement has payments and inputs as follows. Calculate the XNPV, XIRR, NPV and IRR of the resulting cash flows

  Reaching financial goal-early retirement fund

Erika and Kitty, who are twins, just received $35,000 each for their 26th birthdays. They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her "early retirement fund" on her birthday, beginning a year f..

  What effect would such an amendment be likely to have

"Congress shall establish a central bank that will be responsible for conducting the monetary policy of the United States." What effect would such an amendment be likely to have on the Fed?

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