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
18,796,259 questions answered
Popular Conversations
What is the equation of the line that passes through (4, -1) and (-2, ...
Weegy: The equation of the line that passes through (4, -1) and (-2, 3) is: 2x + 3y - 5 = 0. User: If f(x) = 3x2 - ...
12/19/2014 9:38:50 AM| 4 Answers
Simplify 7(n - p) + 5p. User: Simplify 8 + 3{x - 2[x + 5(x + 3)]}. ...
Weegy: 3-3 = 0 User: Select the correct product. (y + z)3 Weegy: What do you want me to do about your equation? ...
12/19/2014 10:41:10 AM| 4 Answers
3 + 2y = -3, what is y?
12/19/2014 1:06:06 PM| 3 Answers
What is the solution of the equation? A. –4 B. 8 C. 44 ...
Weegy: (b + 6)/5 = 10 b + 6 = 50 b = 50 - 6 b = 44 User: What is the solution of the equation? 3 = b + 3 A. 9 ...
12/19/2014 4:08:47 PM| 3 Answers
The US is the world’s leading producer of ...
12/19/2014 6:33:14 AM| 2 Answers
Solve: 2x + 16 = 40
Weegy: 2x + 3 = 5; 2x = 5 - 3; 2x = 2; x = 2/2; x = 1 User: Factor: x2 - 12x + 27
12/19/2014 7:51:37 AM| 2 Answers
Find the product. -2x a(-4x b - 2x 3 + 5x)
Weegy: 2x a(-4x b - 2x 3 5x), The result is 2xa(-4bx-30x^2) User: Simplify 8 + 3{x - 2[x + 5(x + 3)]}. User: Find ...
12/19/2014 10:32:54 AM| 2 Answers
monologue User: Shepheardes Calender
12/19/2014 11:08:20 AM| 2 Answers
Find the product mentally. (2m - 9)2
Weegy: 3-3 = 0 User: Select the correct product. (a + 8)(b + 3)
12/19/2014 11:08:48 AM| 2 Answers
Find the product mentally. (ab + 3)(ab - 3)
Weegy: 3-3 = 0 User: Find the product. (r + s)2
12/19/2014 11:11:21 AM| 2 Answers
Weegy Stuff
S
L
P
Points 1116 [Total 4960]| Ratings 0| Comments 1116| Invitations 0|Offline
S
L
Points 712 [Total 1403]| Ratings 1| Comments 702| Invitations 0|Offline
S
1
L
1
L
P
P
L
P
Points 663 [Total 14848]| Ratings 0| Comments 663| Invitations 0|Offline
S
Points 663 [Total 663]| Ratings 1| Comments 653| Invitations 0|Offline
S
P
C
L
P
L
1
Points 88 [Total 6407]| Ratings 1| Comments 78| Invitations 0|Offline
S
L
Points 72 [Total 1532]| Ratings 1| Comments 62| Invitations 0|Online
S
1
L
L
Points 33 [Total 6700]| Ratings 0| Comments 33| Invitations 0|Offline
S
Points 30 [Total 30]| Ratings 0| Comments 0| Invitations 3|Offline
S
Points 23 [Total 29]| Ratings 0| Comments 23| Invitations 0|Offline
S
Points 22 [Total 22]| Ratings 0| Comments 2| Invitations 2|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.