How much debt business can carry

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Reference no: EM132050333

1. The MEP company has issued 5,010,000 new shares. Its investment bank agrees to underwrite these shares on a best efforts basis. The investment bank is able to sell 4,210,000 shares for $55 per share. It charges MEP $1.30 per share sold.

How much money does MEP receive?

What is the investment bank’s profit?

What is the stock price of MEP?

2. How much debt usually a business owner can personally carry (percentage wise). How much debt a business can carry? What owner equity will a business owner can have on Day One of the business?

Reference no: EM132050333

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