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
21,038,261 questions answered
Popular Conversations
The graph of y = 2 x and the graph of y = 2 -x are symmetrical. What ...
Weegy: x^2+y = 3 is the answer. User: Find the roots. 2x 2 + 7x - 15 =0 User: Solve for x. 8x 2 - 5 = 11 Weegy: ...
5/21/2015 9:51:26 AM| 4 Answers
What is the equation of a line that passes through points (0, 4) and ...
Weegy: The equation of a line that passes through points (0, 4) and (-4, -8) is y= 3x + 4 User: Which of the ...
5/21/2015 10:31:24 AM| 4 Answers
Which of the following statements about the coordinate plane are ...
Weegy: A marathon runner runs at the rate of 9 mph for the complete course. A track man runs at 12 mph. If together ...
5/21/2015 1:22:31 PM| 3 Answers
Cuban dictator
Weegy: What is your question about Cuban dictator? Please be more specific. User: Group formed to promote democracy, ...
5/21/2015 6:55:14 AM| 2 Answers
Find the product. 3y 2 z(2y 2 z 4yz - y z) User: 3y 2 z(2y 2 z + ...
Weegy: y/3 + 9 = 9 y/3 = 9 - 9; y/3 = 0; y = 0 * 3; y = 0 User: Find the product. -mnp(3m - 5n + 7p)
5/21/2015 8:05:20 AM| 2 Answers
Simplify. (x 6)2 · x -3 User: How many subsets of at least two ...
Weegy: The number of subsets of n elemnets = 2^n but this also includes a null set, because a null set is a subset of ...
5/21/2015 10:24:42 AM| 2 Answers
When Japan proceeded to invade Manchuria,
Weegy: False. the national socialist party for china would have been Sun Yat Sens koumintang (KMT) and it had been ...
5/21/2015 10:59:37 AM| 2 Answers
Weegy Stuff
S
L
Points 706 [Total 1236]| Ratings 2| Comments 686| Invitations 0|Offline
S
1
Points 440 [Total 832]| Ratings 1| Comments 430| Invitations 0|Online
S
Points 414 [Total 422]| Ratings 1| Comments 404| Invitations 0|Offline
S
P
C
L
P
L
1
P
P
1
P
1
Points 204 [Total 8950]| Ratings 0| Comments 204| Invitations 0|Offline
S
1
L
L
Points 67 [Total 8250]| Ratings 0| Comments 67| Invitations 0|Offline
S
L
P
Points 60 [Total 2537]| Ratings 0| Comments 60| Invitations 0|Offline
S
L
Points 55 [Total 3809]| Ratings 2| Comments 35| Invitations 0|Offline
S
Points 33 [Total 53]| Ratings 0| Comments 33| Invitations 0|Offline
S
Points 14 [Total 14]| Ratings 0| Comments 14| Invitations 0|Offline
S
L
1
R
Points 13 [Total 1300]| Ratings 0| Comments 13| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2015 Purple Inc.