Solution-Total direct costs of the issue

Total direct costs of the issue

Assignment Help Corporate Finance

Reference no: EM13212952

Gus' Games stock currently sells for $50 per share. There are 4 million shares currently outstanding. The company announces plans to raise $5 million by offering shares to the public at a price of $45 per share. (12 points)

a)If the underwriting spread is 4%, how many shares will the company need to issue in order to be left with the net proceeds of $5 million?(6 points)

b)If other administrative costs are $90,000, what is the dollar value of the total direct costs of the issue?

2.The three possible outcomes of an investment are listed below. All outcomes are equally likely. Calculate the average profit, variation and the standard deviation of this investment. (12 points)

Profit

Best Case +$400

Most Likely +$150

Worst Case -$300

Reference no: EM13212952

Questions Cloud

Compare the accuracy of each of the forecasting methods : Year Actual 5yr move 3yr exponential exponential demand average avg. smoothing smoothing W=0.9 W=0.3 2000 800 xxxxx xxxxx xxxxx xxxxx 2001 925 xxxxx xxxxx 2002 900 xxxxx xxxxx 2003 1025 xxxxx 2004 1150 xxxxx 2005 1160 2006 1200 2007 1150 2008 1..

How penalty method is applied on a one dimensional : how penalty method is applied on a one dimensional heat equation in Meshless method.

Explain the potential energy diagram for a system : Draw a sketch, roughly to scale, of the potential energy diagram for a system in which Ea= +80kJ and ?H= -20kJ. Label the axes, reactants

What is the outer radius : A hollow cylinder steel column of 5 m high is shortens by 0.03 cm under a compression load of 40, 000 kg. If the inner radius of the cylinder is 0.08 of the outer one, what is the outer radius?

Total direct costs of the issue : If the underwriting spread is 4%, how many shares will the company need to issue in order to be left with the net proceeds of $5 million and what is the dollar value of the total direct costs of the issue?

Find out the evaporator temperature : determine the evaporator temperature at which a single-stage R22 plant will cease to produce any refrigerating effect in delhi where the condenser temperature is 42 degree C

Fiind a use that will yeild a desirable return on investment : The owner of a corner lot wants to fiind a use that will yeild a desirable return on his investment. After much study and calculation, the ower decides that the two best alternatives are to "build gas station" or to "build soft ice cream stand".

What is the ideal mechanical advantage of the system : A wheel barrow is used to lift a 200 lb load. The length from the wheel axle to the center of the load is 2 ft. The length from the wheel and axle to the effort is 5 ft. 5. What is the ideal mechanical advantage of the system?

Determine the coordinates xc and yc of the point : determine the coordinates xc and yc of the point where the resultant load must act in order to produce uniform normal stress in the column.

User Account

All Pages

Total direct costs of the issue

Reference no: EM13212952

Reference no: EM13212952

Questions Cloud

Reviews

Write a Review

Corporate Finance Questions & Answers

Impact of the global economic crisis on business environment

Explain the short and the long-run effects on real output

Examine the requirements for measuring assets

Financial analysis report driven by rigorous ratio analysis

Calculate the value of the merged company

Stock market project

Write paper on financial analysis and business analysis

Intermediate finance

Average price-earnings ratio

Determine the financial consequences

Prepare a spread sheet model

Principles and tools for financial decision-making

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT