Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The Presley Corporation is about to go public. It currently has aftertax earnings of $7,600,000, and 2,100,000 shares are owned by the present stockholders (the Presley family). The new public issue will represent 600,000 new shares. The new shares will be priced to the public at $20 per share, with a 6 percent spread on the offering price. There will also be $280,000 in out-of-pocket costs to the corporation. a. Compute the net proceeds to the Presley Corporation. (Do not round intermediate calculations and round your answer to the nearest whole dollar.) b. Compute the earnings per share immediately before the stock issue. (Do not round intermediate calculations and round your answer to 2 decimal places.) c. Compute the earnings per share immediately after the stock issue. (Do not round intermediate calculations and round your answer to 2 decimal places.) d. Determine what rate of return must be earned on the net proceeds to the corporation so there will not be a dilution in earnings per share during the year of going public. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) e. Determine what rate of return must be earned on the proceeds to the corporation so there will be a 5 percent increase in earnings per share during the year of going public.
The current spot rate is W$1 = $.91. What is the net present value of this project in U.S. dollars using the foreign currency approach?
App Store Co. issued 16-year bonds one year ago at a coupon rate of 7.7 percent. The bonds make semi-annual payments. If the YTM on these bonds is 5.4 percent, what is the current bond price? (Do not round intermediate calculations. Round your answer..
Compute the forward discount or premium for the Canadian dollar whose 90-day forward rate is $1.2785 and spot rate is $1.2536.
How can corporations manage how surprises in business news impact their stock prices? Provide real-life examples that support your position.
What is the weighted average cost of capital for this company if the company’s marginal tax rate is 39%?
A company is considering buying a new machine that will expand the company’s product lineup. The machine costs $1.1 million and will generate cash flows of $300,000 per year for next five years. Assume that the cost of capital is 10%. Find the net pr..
Consider the following pair of mortgage loan options for a ?$150, 000 mortgage. Which mortgage loan has the larger total cost? (closing costs? + the amount paid for points? + total cost of? interest)? By how? much? Mortgage A has a larger total cost ..
On the other hand, Nguyen and Tang (2009) find that- The 2008 short-sale ban has a ________ (positive or negative or no) impact on the stock prices of the banned stocks in the ban period.
The CFO wants to finance with 60% debt, but the president thinks it would be better to hold the percentage of debt in the capital structure (wd) to only 10%.
What was the variance because of the failure to get the gross marketing contribution?
The S&P 500 Index price is 1492.28 and its annualized dividend yield is 2.30%. LIBOR is .2%. How many futures contracts will you need to hedge a $240 million portfolio with a beta of 1.16 for one year?
Security F has an expected return of 11.50 percent and a standard deviation of 44.50 percent per year. Security G has an expected return of 16.50 percent and a standard deviation of 63.50 percent per year. What is the expected return on a portfolio ..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd