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!
Question: Tyson Iron Works is about to go public. It currently has aftertax earnings of $4,500,000, and 3,000,000 shares are owned by the present stockholders. The new public issue will represent 400,000 new shares. The new shares will be priced to the public at $15 per share with a 4 percent spread on the offering price. There will also be $160,000 in out-of-pocket costs to the corporation.
a. Compute the net proceeds to Tyson Iron Works.
b. Compute the earnings per share immediately before the stock issue.
c. Compute the earnings per share immediately after the stock issue.
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.
e. Determine what rate of return must be earned on the proceeds to the corporation so there will be a 10 percent increase in earnings per share during the year of going public.
In what ways might a presentation of financial statements to the Board of Directors of a large company differ to the presentation of financial statements to a small sole trader and why?
What temptations might managers face if they have provided earnings guidance to investors and later find it difficult to meet the expectations that they helped create? Explain.
According to the expectations theory of the term structure. if interest rates are expected to be 2%, 2%, 4%, and 5% over the next four years, what is the yield on a three-year bond one year from today?
If the corporation sells more bonds it will incur flotation costs of $48 per bond. If the corporate tax rate is 35%, what is the after-tax cost of debt capital?
Project A and Project B will both cost $10,000. Project A returns $3,000 a year for 7 years. Project B returns $5,000 a year for 2 years. Using the payback period explain which project should be selected?
you are a graduate trainee investment analyst at a renowned fund management company. after six 6 months of joining the
What is the difference between intrinsic value and market value?
Describe two situations in which you would use each of the following techniques: internal literature review, interview, internal presentation, observation, walkthrough, database and files review, and questionnaire.
expected return on stock investment. tom laboratorys common stock is currently selling at 60 per share. the next
What is the cost of the loan, and how much would you ask for as the loan amount if you had to have $1,000,000?
Why would ?rms with high Return On Assets (ROA) refrain from leveraging up their ?rm by borrowing and investing the funds in pro?table assets?
a payment of 10 at time 1 and a payment of 20 at time 4 is equivalent to a payment of 30 at time t assuming a constant
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