User Account

All Pages

What is the dollar value of the total direct costs

Assignment Help Accounting Basics
Reference no: EM132841347

Question - Young Corporation stock currently sells for $20 per share. There are 1 million shares currently outstanding. The company announces plans to raise $5 million by offering shares to the public at a price of $20 per share.

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

b. If the under writing spread is 4% and the other administrative costs are $80,000, what is the dollar value of the total direct costs of the issue?

c. If the share price falls by 5% at the announcement of the plans to proceed with a seasoned offering, what is the dollar cost of the announcement effect?

Reference no: EM132841347

Questions Cloud

What changes in employment relationships : What changes in employment relationships are likely to occur as the population ages? What are some of the important benefits of having a diverse workforce.
How do you know that the methods have been effective : As you have explored this week, affirming communication focuses on respect for children and involves both speaking and listening.
Networked Forensic Investigation Assignment : Networked Forensic Investigation Assignment Help and Solution, Leeds Beckett University - Assessment Writing Service - Develop a critical understanding
Examples of occupational health and safety requirements : What are 5 examples of occupational health and safety requirements. What are the 4 points of correct equipment handling
What is the dollar value of the total direct costs : If the under writing spread is 4% and the other administrative costs are $80,000, what is the dollar value of the total direct costs of the issue
Calculate the balloon payment at maturity : The loan has a term of 5 years, but amortizes over 25 years. Calculate the balloon payment at maturity (Year 5) if the interest rate on this loan is 5.5%.
Capacity management in businesses : Capacity management in businesses is a function of their operations and environment.
How might the children identify with mickey : As you explored this week, persona dolls provide a great basis for learning and can be used to help young children communicate about a wide range of complex.
Case study 7 garcia public policy center : The information provided here is not detailed enough for a formal report, but assume that you are making an informal report in a preliminary stage of the report

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd