Capital raising and dividend policy

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Question: Capital Raising and dividend policy

  1. Black Ltd has paid $0.50 dividend every 6 months for the past 3 years. Black Ltd just lowered its declared dividend to $0.40 for the next dividend payment. Discuss what this new information might convey concerning Black Ltd management's belief concerning the future of the company.
  2. Hexagon Ltd, a high-technology company in Victoria, issues a $85 million IPO with an offer price of $75 per share.  The firm receives $72 per share, and the company's legal fees, ASIC registration fees and other administrative costs are $540, 000. The company's share price increased to $83 on the first day. What is the company's total cost of issuing the securities?

Reference no: EM133206030

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