Calculating costs of issuing stock

Assignment Help Financial Management

Reference no: EM131567930

Calculating Costs of Issuing Stock Turbo Technology Corp. recently went public with an initial public offering of 3.02 million shares of stock. The underwriter used a firm commitment offering in which the net proceeds was $7.60 per share and the underwriter's spread was 5 percent of the gross proceeds. Turbo also paid legal and other administrative costs of $220,000 for the IPO. Calculate the gross proceeds per share received by Turbo from the sale of the 3.02 million shares of stock.

A) 8.01 B) 7.67 C) 8.08 D) 7.60

Reference no: EM131567930

Questions Cloud

Explore the changing definitions of american society : What is a special interest group - 14th Amendment of the U.S. Constitution Library of Congress - The Role of the State in the Age of Globalisation Kofi Annan

Extent of the united nation success in achieving its goals : Discuss the extent of the United Nation’s success in achieving its goals. Suggest ways to improve its effectiveness.

How much interest revenue will middleton corp report : On February 1, 2018, Middleton Corp. lends cash and accepts a $2,100 note receivable that offers 10% interest and is due in six months

How improvements may be made to their role in today economy : Evaluate how financial analysts ensure that capital markets are efficient, suggesting how improvements may be made to their role in today's economy

Calculating costs of issuing stock : Calculating Costs of Issuing Stock Turbo Technology Corp. recently went public with an initial public offering of 3.02 million shares of stock.

What were the bonus to the new partner : Lamar's capital balance is $33,200 after admitting Terrell to the partnership by investment. If Lamar's ownership interest is 20% of total partnership capital.

Evaluate the likely impact on a firm valuation : Evaluate the likely impact on a firm's valuation when using U.S. GAAP versus IFRS accounting methods, indicating which accounting standards

Create an argument supporting that using valuation method : Create an argument supporting that using the earnings-based valuation method yields the most accurate results. Provide support for your argument

What is active listening : What is Active listening and why is it important in the workplace?

User Account

All Pages