Determine the floatation cost of funds raised

Assignment Help Finance Basics
Reference no: EM1364055

Lewis Morris Crew spends $350,000 in bureaucratic expenses in their IPO. The underwriter sells 3 million shares at an offer price of $9.63, charging Lewis Morris Crew 50 cents per share in spread. The stock closes at $12. What was the floatation cost as a fraction of funds raised?

Reference no: EM1364055

Questions Cloud

General partnership-limited partnership : I need to determine the best form of business entity for a business having the following characteristics and explain why choose that form of business:
Elucidate how each of the following would affect the demand : Elucidate how each of the following would affect the demand schedule you derived.
Complimentary and alternative therapy : For patients under hospice care, would combining complimentary and alternative therapy with traditional/Western medicine practices assist in improving symptom control?
What is the charge on wire : What is the charge on a 1.0 cm length of wire. What is the net force exerted on the skier.
Determine the floatation cost of funds raised : Lewis Morris Crew spends $350,000 in bureaucratic expenses in their IPO. The underwriter sells three million shares at an offer price of $9.63, charging Lewis Morris Crew fifty cents per share in spread.
Explain marketing plan for a company : Explain marketing plan for a company would like to produce solar heating to heat water by solar energy for houses use
Powerpoint presentation creation for staff training : Put the exact text of your talk in the "Notes" section. Once you have created your presentation describe your thought process in doing so briefly
Devise algorithm to generate access control matrix : Devise an algorithm that generates an access control matrix A for any given history matrix H of the Chinese Wall model. A significant portion of the grade for this problem involves your justification of your algorithm.
What will happen to the price of lettuce rises : Assume that the market for salad dressing is in equilibrium. What will happen to the price of lettuce rises.

Reviews

Write a Review

Finance Basics Questions & Answers

  Decreasing medical expenses

Phillip developed hip problems and was unable to climb the stairs to reach his 2nd floor bedroom. His physician advised him to add a first-floor bedroom to his home.

  Determine the portfolio weights

Determine the portfolio weights  for a portfolio that has 145 shares of stock A that sells for $45 per share and 110 shares of Stock B that sells for $27 per share?

  Static tradeoff model of optimal capital structure

Which of the following expresses the value of the levered firm (VL) in the Static Tradeoff model of optimal capital structure?

  Determine the contribution per unit

After spending $300,000 for research and development, chemists at Diversified Citrus Industries have developed a breakfast drink. The drink, called Zap, will provide the customer with twice the value of Vitamin C currently available in breakfast drin..

  Prepare an outline to hand out at the session

I need help creating an outline for the below data. You are a assistant manager of Human Resources for this regional office of Cost Club.

  Calculate the dividend yield and stock price

Suppose you expect a share of stock to pay dividends of $1.00, $1.25, and $1.50 in each of next three years. You believe the stock will sell for $20 at the end of the third year.

  Question based on taxation and stock

Sarah owns 45 percent of stock in a C company that had a profit of 260,000$ in 2011. Kevin owns a 45 percent interest in a partnership that had a benefit of 260,000$ during the year. Find the income for Kevin and Sarah report for 2011.

  Determine the npv

Determine the NPV  if the discount rate is 12.37 percent.

  Currency board-central bank-nominal exchange rate target

Explain the chief differences between a currency board and a central bank with the nominal exchange rate target.

  Find what is the risk neutral rate of return

Find what is the risk neutral rate of return that can earned using a riskless hedge and stock

  Recommendations for a cash management plan

Marcia and Phil Helm, a couple in their thirties, have been married for many years. They have no children, and each has a professional career. Marcia is a trainee for a management position at a big department store, and Phil is an engineer at an elec..

  Four time value of money concepts

Explain the four time value of money concepts - present value, present value of an annuity, future value, and future value of annuity.

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