Blue Corporation stock currently sells for $55 per share. There are 6 million shares currently outstanding....
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Blue Corporation stock currently sells for $55 per share. There are 6 million shares currently outstanding. The company announces plans to raise $1 million by offering shares to the public at a price of $55 per share. If the underwriting spread is 9 %, how many shares will the company need to issue in order to be left with net proceeds of $1 million? Enter your answer as a whole number not in millions. (For example, 1,000,000 not 1 million.) Shares = 19980 Correct response: 19,980110 If other administrative costs are $100,000, what is the dollar value of the total direct costs of the issue? Assume that 19,980 shares are issued. Enter your answer as a whole number. Direct costs = Number Section Attempt 1 of 1 Verify Submit Assignment Quit & Save Question Menu Next Blue Corporation stock currently sells for $55 per share. There are 6 million shares currently outstanding. The company announces plans to raise $1 million by offering shares to the public at a price of $55 per share. If the underwriting spread is 9 %, how many shares will the company need to issue in order to be left with net proceeds of $1 million? Enter your answer as a whole number not in millions. (For example, 1,000,000 not 1 million.) Shares = 19980 Correct response: 19,980110 If other administrative costs are $100,000, what is the dollar value of the total direct costs of the issue? Assume that 19,980 shares are issued. Enter your answer as a whole number. Direct costs = Number Section Attempt 1 of 1 Verify Submit Assignment Quit & Save Question Menu Next
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
Posted Date:
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