Dean Drones Ltd., based in Hong Kong, has 3 million shares outstanding. The firm is planning...
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Dean Drones Ltd., based in Hong Kong, has 3 million shares outstanding. The firm is planning on issuing an additional 130,000 shares at an offer price of $5 by way of crowdfunding. They have engaged a crowdfunding company, which agreed to a commission of 5% of the amount raised. Dean Drones has also planned to sell another 24,500 shares to a venture capitalist, who will only invest if the crowdfunding is successful. However, he will pay 75% of the offer price. How much cash will Dean Drones raise from these share sales? The total cash raised by Dean Drones from these share sales is $ (Round to the nearest dollar.) Dean Drones Ltd., based in Hong Kong, has 3 million shares outstanding. The firm is planning on issuing an additional 130,000 shares at an offer price of $5 by way of crowdfunding. They have engaged a crowdfunding company, which agreed to a commission of 5% of the amount raised. Dean Drones has also planned to sell another 24,500 shares to a venture capitalist, who will only invest if the crowdfunding is successful. However, he will pay 75% of the offer price. How much cash will Dean Drones raise from these share sales? The total cash raised by Dean Drones from these share sales is $ (Round to the nearest dollar.)
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Solution Price to Venture Capital Offer price he will pay Price to Venture ... View the full answer
Related Book For
Financial Management Principles and Applications
ISBN: 978-0134417219
13th edition
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
Posted Date:
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