XYZ Ltd plans to do a share offering for its expansion to the international market. The...
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XYZ Ltd plans to do a share offering for its expansion to the international market. The net amount required for the expansion is $46 million. The underwriter spread for the share offering is 8%. The market price is $25 per share on the offering day. The total out-of-pocket expense is $320,000. The company's share price becomes $30 on the first day of trading. a) Calculate the total amount needed to be raised in the share offering. (1 mark) b) Calculate the total underwriting spread in dollars. (1 mark) XYZ Ltd plans to do a share offering for its expansion to the international market. The net amount required for the expansion is $46 million. The underwriter spread for the share offering is 8%. The market price is $25 per share on the offering day. The total out-of-pocket expense is $320,000. The company's share price becomes $30 on the first day of trading. a) Calculate the total amount needed to be raised in the share offering. (1 mark) b) Calculate the total underwriting spread in dollars. (1 mark)
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a Total amount to raise net amount required out of ... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0134472140
13th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Posted Date:
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