User Account

All Pages

What was net amount raised by the company

Assignment Help Accounting Basics
Reference no: EM132729288

Assume a company incurs €2 million in legal expenses to sell 4 million shares at €52 each to an underwriter, and the underwriter sells the shares at public offer price €56 each. By the end of the first day's trading, the issuing company's stock price had risen to 68€.

Problem 1. What was net amount raised by the company?

Problem 2. What was the total underwriters spread?

Problem 3. What was the total cost of underpricing?

Problem 4. What was the total flotation cost?

Problem 5. What was the flotation cost as a percentage of the net amount raised?

Problem 6. Discuss the reasons of going public for the company.

Reference no: EM132729288

Questions Cloud

Fossil fuels and renewable energy resources : Discuss the scientific and technical concepts related to the uses of fossil fuels and renewable energy resources.
How large a sales increase can the company achieve : How large a sales increase can the company achieve without having to raise funds externally-that is, what is its self-supporting growth rate
What sum of money will be required to settle an obligation : What sum of money will be required to settle an obligation of P20,000 after 4 years and 3 months at 5% compounded semiannually?
With microsoft office used in many medical settings : With Microsoft Office used in many medical settings, it is safe to say that you will be completing tasks using at least one of the applications in the Office su
What was net amount raised by the company : What was the flotation cost as a percentage of the net amount raised? What was net amount raised by the company? What was the total flotation cost?
The nutritional needs for specific stage of life : The General Secretary of the FDA has tasked you with developing an educational flier on the nutritional needs for a specific stage of life.
How much is the effective or real cash flow : Assuming the inflation rate is 3% per year. How much is the effective or real cash flow he would receive each period while considering the inflationary factor.
What ending exchange rate would morning star air be : At what ending exchange rate would Morning Star Air be indifferent between borrowing U.S. dollars and borrowing Hong Kong? dollars?
Encountering challenging dilemmas and mentorship : The role of the NP is quite rewarding. Might the availability of other NPs as mentors impact how the novice NP manages challenges?

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