Dean Drones Ltd., based in Hong Kong, has 1 million shares outstanding. The firm is planning on

Question:

Dean Drones Ltd., based in Hong Kong, has 1 million shares outstanding. The firm is planning on issuing an additional 100,000 shares at an offer price of $5 by way of crowdfunding. They have engaged a crowdfunding company which has agreed to a commission of 4% of the amount raised. Dean Drones has also planned to sell another 25,000 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?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Principles Of Managerial Finance Brief

ISBN: 9781292267142

8th Global Edition

Authors: Chad J. Zutter, Scott B. Smart

Question Posted: