What was flotation cost as a percentage of funds raised

Assignment Help Financial Management
Reference no: EM131517574

The Collins Co. has just gone public. Under a firm commitment agreement, the company received $32.40 for each of the 4.14 million shares sold. The initial offering price was $34.80 per share, and the stock rose to $41.80 per share in the first few minutes of trading. The company paid $909,000 in legal and other direct costs and $258,000 in indirect costs. What was the flotation cost as a percentage of funds raised.

Reference no: EM131517574

Questions Cloud

What is change in price the bond will experience in dollars : A 8.30 percent coupon bond with 13 years left to maturity is priced to offer a 9.0 percent yield to maturity.
How might the social and natural environments : How might the social and natural environments of the two civilizations help account for these very different attitudes?
Motivations of employees : To what extent do you feel that the motivations of employees are likely to be affected by the CSR activities (or lack of) of the firms that they work for?
Describe what effect the presidential doctrine you chose : Describe what effect the presidential doctrine you chose has had on regional or global affairs since it was announced during the Cold War
What was flotation cost as a percentage of funds raised : The company paid $909,000 in legal and other direct costs and $258,000 in indirect costs. What was the flotation cost as a percentage of funds raised.
Net present value of the new computer system : What is the net present value of the new computer system,
What is the effective cost of bank financing : What is the effective cost of bank financing if the loan amount is $100,000, interest is discounted (advance), a 1% commitment fee is paid up front,
How credit plays important part in personal finance : Write a 2 page summary of how credit plays an important part in personal finance.
Develop a plan for a formal learning experience on a topic : This week, you will begin your Course Project, in which you will develop a plan for a formal learning experience on a topic of your choice

Reviews

Write a Review

Financial Management Questions & Answers

  Investors should not hold foreign equities

Investors should not hold foreign equities because they are more volatile and have been yielding lower returns than U.S. stocks in recent years. Home bias arises because investors face an additional risk when investing internationally-namely, currenc..

  When interest rates are very low by historical standards

During a period when interest rates are very low by historical standards and are expected to increase substantially over time, individuals should choose. Asset utilization ratios. A short-term creditor would be most interested in.

  An asset-or-nothing call delivers the underlying asset

A cash-or-nothing call pays $10 if the underlying asset price is above the strike at expiration and 0 otherwise. Price the call in terms of sigma, K, S0, r, and T under the Black-Scholes assumptions. An asset-or-nothing call delivers the underlying a..

  Requires initial investment in spare parts inventory

Massey Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $380,000 is estimated to result in $145,000 in annual pretax cost savings. The press also requires an initial investment in sp..

  What is yield-to-maturity of this bond

United Air has a 5.75% coupon 20 year bond (par value = 1,000). Assume that coupon payments are semi-annual and that the current price is $965.45. What is the yield-to-maturity of this bond?

  Considers the revival of trade and agricultural prosperity

Write an essay that considers the revival of trade and agricultural prosperity, population growth, the development of towns and cities, universities, and state institutions during the High Middle Ages (c. 1000-1300). How did these institutions emerge..

  Brokerage account at same time with same brokerage firrm

You and your friend opened a brokerage account at the same time with the same brokerage firm a year ago. At that time, each of you bought $10, 000 worth of shares of XYZ stock on margin. However, out of $10, 000 each of you needed for your initial pu..

  Spot rate on treasury bill-determine the expected yield

Given the spot rate on a 90 day(3 month) treasury bill is 1.5% and the spot rate on a 180 day (6 month) treasury bill is 2.5%, determine the expected yield on a 90 day(3 month) treasury bill three months from now.

  Pricing methods-markup pricing-target-return pricing

Out of all the pricing methods: markup pricing, target-return pricing, perceivedvalue pricing, value pricing, going-rate pricing, and auction-type pricing. As a consumer, which do you prefer to deal with? Why?

  A project requires an initial cash outlay

A project requires an initial cash outlay of $60,000 and has expected cash inflows of $15,000 annually for 8 years. The cost of capital is 10%. What is the project’s IRR? Show your work.

  What is the present value

What is the present value of $2,925 per year, at a discount rate of 8 percent, if the first payment is received 10 years from now and the last payment is received 23 years from now?

  Directly increase cash as shown on firms balance sheet

Which of the following actions are most likely to directly increase cash as shown on a firm’s balance sheet?

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