Finance its expansion into new markets

Assignment Help Financial Management
Reference no: EM131607748

The Valhalla Corporation needs to raise $80 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $35 per share and the company's underwriters charge a spread of 5 percent. If the SEC filing fee and associated administrative expenses of the offering are $600,000, how many shares need to be sold? (Do not round intermediate calculations and round your final answer to nearest whole number. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Reference no: EM131607748

Questions Cloud

At what price should the bonds sell : Randall, inc. is planning to issue bonds that will have mature in 25 years. At what price should the bonds sell?
Estimate of the dividend growth rate : If Coca-Cola's equity cost of capital is 8.4% what share price would you expect based on your estimate of the dividend growth rate?
What should the price of portage bay stock be : what should the price of Portage Bay's stock be?
What is yield to maturity if interest is paid semiannually : What is the yield to maturity if interest is paid semiannually?
Finance its expansion into new markets : The Valhalla Corporation needs to raise $80 million to finance its expansion into new markets.
Retirement savings goal : each month must you deposit into the account through your 70th birthday in order to reach your retirement savings goal on your 70th birthday?
What is its required expected return based on its risk : A stock has a beta of 1.7 the market risk premium id 8.0% and the risk free rate is 2%. What is its required expected return based on its risk?
What price should the bonds sell : Murat corporation recently issued bonds that mature in 30 years. what price should the bonds sell?
What is the company ex-rights price and value of a right : What is the new market value of the company? What is the ex-rights price? What is the value of a right?

Reviews

Write a Review

Financial Management Questions & Answers

  Risk-averse investors will hold a portfolio of safe stocks

More risk-averse investors will hold a portfolio of safe stocks with lower expected return and lower volatilities.

  What is the difference in the annual inflation rates

Suppose the current exchange rate for the Polish zloty is Z2.75. The expected exchange rate in three years is Z2.83. What is the difference in the annual inflation rates for the United States and Poland over this period? (Do not round intermediate ca..

  Pink sheets are traded

"Pink sheets" are traded on the

  Drawbacks of corporation as form of business organization

Critique the benefits and drawbacks of corporation as a form of business organization.

  About the invest plan

Invest now or later? Twins Barbara and Mary are both age 27. Beginning at age 27, Barbara invests $2000 per year for ten years and then never sets aside another penny. Mary waits 10 years and then invests $2000 per year for the next 30 years. Assumin..

  Find financial ratios for the microsoft corp

Find financial ratios for the Microsoft Corp for the last 1-3 years and its major competitor (Apple) for the last year in the Internet.

  What is richmond corporations total net cash flow

Richmond Corporation was founded 20 years ago by its president, Daniel Richmond. The company originally began as a mail-order company but has grown rapidly in recent years, in large part due to its Web site. Because of the wide geographical dispersio..

  Generic bank receives new demand deposits

1st Generic Bank receives new demand deposits of $1.8 million. Their current reserve requirement is 6%. 1st Generic has $90,000 in vault cash and $100,000 at the the Federal Reserve that has not been invested yet. How much does the bank have availabl..

  Finances entirely with equity capital

Southwest Physicians, a medical group practice, is just being formed. It will need $2 million of total assets to generate $3 million in revenues. Furthermore, the group expects to have a profit margin of 5%. The group is considering two financing alt..

  Use of market research reduces some risk

Companies want to make the best marketing decisions possible regarding which customers to pursue, which products or services to introduce or promote, where to sell their products or services, and at what price. Although not perfect, the use of market..

  Use the basic equation for the capital asset pricing model

Use the basic equation for the capital asset pricing model (CAPM) to work each of the following problems. Find the required return for an asset with a beta of 0.77 when the risk-free rate and market return are 7% and 15%, respectively. Find the risk-..

  High-risk intersections to reduce traffic accident

The City of Vernon, TX is considering installing red light cameras at high-risk intersections to reduce traffic accidents.

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