The beranek company whose stock price is now 25 needs to

Assignment Help Corporate Finance

Reference no: EM13379367

The Beranek Company, whose stock price is now $25, needs to raise 20 million in common stock. Underwriters have informed the firm's management that they must price the new issue to the public at $ 22 per share because of signaling effects. The underwriters' will be %5 of the issue price, so Beranek will net $20.90 per share. The firm will also incur expenses in the amount of $ 150,000. How many shares must the firm sell to net $ 20 million after underwriting and flotation expense?

Reference no: EM13379367

Questions Cloud

The following particulars were extracted from the books of : the following particulars were extracted from the books of x ltd. on 31 april 2011 the day on which a winding up order

How much does the economy have to grow potential output is : how much does the economy have to grow potential output is 3.5 and the unemployment rate is 7.3 in 2014 to bring the

Over the past 10 years your 15000 in gold coins has : over the past 10 years your 15000 in gold coins has increased in value by 200 percent. you plan to sell these coins

Suppose the economy has a natural rate of unemployment of : suppose the economy has a natural rate of unemployment of 5.a. suppose short-run output over the next four years is 1 0

The beranek company whose stock price is now 25 needs to : the beranek company whose stock price is now 25 needs to raise 20 million in common stock. underwriters have informed

A construction company is considering procuring one of two : a construction company is considering procuring one of two types of heavy construction equipment a and b. each type of

1from the perspective of classical macroeconomic theory an : 1.from the perspective of classical macroeconomic theory an excess of aggregate spending woulda. increase aggregate

The no-shoplift security company is interested in bidding : the no-shoplift security company is interested in bidding on a contract to provide a new security system for a large

As the money manager of boston bank you have 1000000 : as the money manager of boston bank you have 1000000 available for six months. you have the opportunity to lend the

User Account

All Pages