Shares of common stock outstanding

Assignment Help Finance Basics
Reference no: EM132467195

Prahm Corp. wants to raise $5.1 million via a rights offering. The company currently has 570,000 shares of common stock outstanding that sell for $52 per share. Its underwriter has set a subscription price of $27 per share and will charge the company a spread of 6 percent.

If you currently own 5,000 shares of stock in the company and decide not to participate in the rights offering, how much money can you get by selling your rights? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM132467195

Questions Cloud

Levered value of the firm with perfect capital? markets : If the? firm's unlevered equity cost of capital is? 11%, what is the levered value of the firm with perfect capital? markets?
What is the value of ajax : Its stock sells for $21 per share ad has earnings per share of $3.80. What is the value of AJax?
What does it mean to be scalable : What does it mean to be scalable? is BIA's advisory business scalable? What are their biggest obstacles? Are BIA's methods working?
What is the value of eggs : Ham is larger than Eggs, but sees both companies as operating in similar markets. What is the value of Eggs?
Shares of common stock outstanding : Prahm Corp. wants to raise $5.1 million via a rights offering. The company currently has 570,000 shares of common stock outstanding that sell for $52 per share
Compare promotional campaigns in terms of behavioral concept : Compare promotional campaigns in terms of behavioral concepts communication, reference group,defense mechanism, brand personification
Calculate the breakeven point : Identify types of forecasting methods and their advantages and disadvantages.Illustrate different pricing approaches that businesses use.
Discuss about what learned about business law : Determine Personal Statement about what you learned about Business Law in this Course and how it applies, or will apply, to you in any of your activities.
What is the? firm pre-tax? wacc : A firm requires an investment of $ 40,000 and borrows $ 10,000 at? 8%. If the return on equity is? 20%, what is the? firm's pre-tax? WACC?

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculating the effective interest rate on loan

A borrower has a 30 year fully amortizing FRM, with a $300,000 balance, 4.5% rate. There is a 3% prepayment penalty on this loan if it is repaid before 5 years.

  Determine additional percentage of the total variation

An economist is interested to see how consumption for an economy is influenced by gross domestic product and aggregate price.

  When ranking security returns from highest return to lowest

When ranking security returns from highest return to lowest return, the data shows that the annualized returns are as follows.

  Portfolio required return

Suppose you manage a $5.22 million fund that consists of four stocks with the following investments:

  What is the estimated average wip level

A company operates a line that produces self-adhesive tiles. The production line of a company consists of single-machine stations and is almost balanced (i.e., station rates are nearly equal). A company engineer has estimated the bottleneck rate to b..

  What is the forward or expected spot exchange rate

What is the forward or expected spot exchange rate among the 2 currencies?

  How much should the investor pay for the bond

A $3,000 face-value bond matures in three years and pays 8% per year payable semiannually (4% every six months). An investor wants a 10% return per year.

  What is the best estimate of the current stock price

Its required return (rs) is 10.50%. What is the best estimate of the current stock price?

  What is the tom current stock price after the recap

Tom Co value of operations is worth $1.2B after a recapitalization. Tom raised $300M in debt to buy back stock.

  Description of the operating profit margin

Choose a public company, and present findings from your financial analysis in a report. Your report must include the following:

  Driving growth and sustainability of mobility industry

Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobil..

  Arnold tofu owns and operates a chain of 12 vegetable

arnold tofu owns and operates a chain of 12 vegetable protein hamburger restaurants in northern louisiana. sales

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