Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Fishwick Enterprises has 190,000 shares outstanding, half of which are owned by Jennifer Fishwick and half by her cousin. The two cousins have decided to sell 120,000 shares in an IPO. Half of these shares would be issued by the company to raise new cash, and half would be shares that are currently held by Jennifer Fishwick. Suppose that the shares are sold at an issue price of $48 but rise to $80 by the end of the first day’s trading. Suppose also that investors would have been prepared to buy the issue at $78.
a. What percentage of the company will Jennifer own after the issue?
b. What will her holding be worth at the end of the first day’s trading?
c. Suppose the issue had been priced at $78. How many shares would the company have needed to sell to raise the same gross proceeds from the IPO?
d. What in this case would be Jennifer’s wealth (cash plus the value of her remaining holding)? (Enter your answer in millions.)
e. What is the cost of underpricing to Jennifer in dollars? (Enter your answer in millions.)
What is the expected forward exchange rate 1 year from now? What is the net present value and rate of return of the project for Sandrine?
Calculate the value of the debt, the share price, and the price of the warrant.
how long will it take to reach your goal.
The required return on this stock is 15%. What is the best estimate of the stock’s current market value?
The direct materials quantity variance was $750 unfavorable and the direct materials price variance was $3,000 favorable. How many units were produced?
What is the present value if the discount rate is 6%, compounded annually? what is the price of the stock today?
What is the reduction in outstanding cash balances as a result of implementing the lockbox system?
Under the Liquidity Premium Theory of the term structure of interest rates, what is the expected 3-year forward rate at the beginning of year 2 (2f3)?
A company’s 5-year bonds are yielding 7% per year. Treasury bonds with the same maturity are yielding 5.2% per year, and the real risk-free rate (r*) is 2.75%. The average inflation premium is 2.05%, and the maturity risk premium is estimated to be 0..
Last year National Aeronautics had a FA/Sales ratio of 40%, What target FA/Sales ratio should the company set?
Inc. is planning to issue two types of 25-year, non-callable bonds to raise a total of $6 million, $3 million from each type of bond. First, 3,000 bonds with a 10% semi-annual coupon will be sold at their $1,000 par value to raise $3,000,000. The OID..
What are the advantages and disadvantages of using the market capitalization of each economy in weighting an international index portfolio?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd