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
18,456,570 questions answered
Popular Conversations
In the poem "God's Grandeur," the phrase "nor can foot feel, being ...
Weegy: In the poem "God's Grandeur," the phrase "nor can foot feel, being shod" means: humans are out of touch with ...
11/27/2014 12:04:03 AM| 1 Answers
Weegy Stuff
S
L
1
L
P
C
1
P
C
1
L
P
C
1
Points 2872 [Total 14582]| Ratings 10| Comments 2772| Invitations 0|Online
S
L
Points 1472 [Total 3758]| Ratings 0| Comments 1472| Invitations 0|Offline
S
Points 842 [Total 874]| Ratings 1| Comments 832| Invitations 0|Offline
S
L
Points 777 [Total 1298]| Ratings 6| Comments 717| Invitations 0|Offline
S
1
L
1
L
P
P
L
P
Points 773 [Total 14147]| Ratings 0| Comments 773| Invitations 0|Offline
S
1
L
L
Points 273 [Total 6667]| Ratings 0| Comments 273| Invitations 0|Offline
S
L
Points 162 [Total 1458]| Ratings 3| Comments 132| Invitations 0|Offline
S
Points 102 [Total 102]| Ratings 1| Comments 92| 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
Home | Contact | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.