Question and answer
Question not found
Ask a question
Not a good answer? Get an answer now. (Free)
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
Questions asked by the same visitor
13-5. (Flotation costs and issue size) D. Butler Inc. needs to raise $14 million. Assuming that the market price of the firm’s stock is $95, and flotation costs are 10 percent of the market price, how many shares would have to be issued? What is the dollar size of the issue?
Weegy: Stock price is $95, so the flotation Costs are $9.50 (10% x $95) the firm receives $95 - 9.50 = $85.50 per share Therefore, to raise $14 million, [ the firm should issue $14,000,000 / $85.50 = 163,743 shares. The dollar size of the issue = $95 x 163,743 = $15,555,585 Flotation cost is the cost that D. Butler would incur when ever it makes any offering of stocks or bonds. The flotation cost includes the cost of printing the formal documents used to record facts, pay the fees from the government, and other cost that is needed to run D. Butler Inc. The dollar size depending on the outcome will determine if the odds are high or low. To raise 14 million, D Butler Inc. can either size the issue by shares or by dollar amounts. To solve for the number of shares for the issue: Divide the amount of money the company needs to raise 14,000,000 by the net price of the stock 85.50 (the price of the stock - 10 percent flotation costs) which equals 163,743 shares. To solve for the dollar amount of the issue: Multiply the number of shares 163,743 times the market price 95.50 for a total dollar amount of $15,555,556. ] (More)
Question
Expert Answered
Asked 2/19/2013 7:14:17 AM
0 Answers/Comments
18,416,020 questions answered
Popular Conversations
. What is the value of 4 cubed? A. 24 B. 43 C. 64 ...
Weegy: The answer is C. 125,000,000 User: What is the value of 324? A. 1,048,576 B. 18 C. 128 D. ...
11/22/2014 4:52:09 PM| 3 Answers
It rained yesterday and is supposed to be sunny today. This is an ...
Weegy: It is an example of B) climate. User: In Hawaii, you can almost always expect 80°F temperatures and daily ...
11/23/2014 3:21:11 AM| 3 Answers
Who is the prime minister of India?
Weegy: Manmohan Singh is the 13th and current Prime Minister of India. User: National flower of India?
11/22/2014 1:28:06 AM| 2 Answers
One of the major advantages of VANs is cost. True or False
Weegy: What is false? Do you have a question for Weegy? User: True or False One of the major advantages of VANs is ...
11/22/2014 2:06:05 AM| 2 Answers
293.55 is 51.5% of what number?
11/22/2014 3:36:30 AM| 2 Answers
When purchasing merchandise for resale for cash, record the ...
Weegy: User: When purchasing merchandise for resale for cash, record the transaction in the Answer: Business documents ...
11/22/2014 6:52:09 AM| 2 Answers
The _____ is the smallest interval in Western music. half ...
Weegy: In Western music, intervals are most commonly differences between notes of a diatonic scale. User: Which types ...
11/22/2014 9:44:17 AM| 2 Answers
Which of the following best describes the advantage of having data ...
Weegy: a. The number of digits that can be included within the data best describes the advantage of having data ...
11/22/2014 11:03:31 AM| 2 Answers
Weegy Stuff
S
L
1
L
P
C
1
P
C
1
L
P
C
1
Points 2381 [Total 14092]| Ratings 10| Comments 2281| Invitations 0|Offline
S
L
Points 1284 [Total 3570]| Ratings 0| Comments 1284| Invitations 0|Offline
S
L
Points 706 [Total 1227]| Ratings 6| Comments 646| Invitations 0|Offline
S
1
L
1
L
P
P
L
P
Points 702 [Total 14076]| Ratings 0| Comments 702| Invitations 0|Offline
S
Points 504 [Total 536]| Ratings 1| Comments 494| Invitations 0|Offline
S
1
L
L
Points 217 [Total 6611]| Ratings 0| Comments 217| Invitations 0|Offline
S
L
Points 150 [Total 1446]| Ratings 3| Comments 120| Invitations 0|Offline
S
Points 50 [Total 50]| Ratings 0| Comments 0| Invitations 5|Offline
S
Points 46 [Total 46]| Ratings 3| Comments 6| Invitations 1|Offline
S
Points 40 [Total 40]| Ratings 4| Comments 0| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.