A company wants to raise $400 million in a new stock issue. Its investment banker indicates that the sale of new stock will percent underpricing and a 4 percent spread (Hint: the underpricing is 5 percent of the current stock price, and the spread of the issue price) a Assuming the company's stock price does not change from its current price of $65 per share, what would be the issue p public after underpricing? How many shares would the company need to sell? Note: Round intermediate calculations to 2 decimal places. Round your answers to 2 decimal places. Enter "Number answer in millions. 4 Issue price Number of shares million b. How much money will the investment banking syndicate earn on the sale? Note: Round intermediate calculations to 2 decimal places. Enter your answer in millions rounded to 2 decimal places. Investment bankers' revenue million

A company wants to raise $400 million in a new stock issue. Its investment banker indicates that the sale of new stock will percent underpricing and a 4 percent spread (Hint: the underpricing is 5 percent of the current stock price, and the spread of the issue price) a Assuming the company's stock price does not change from its current price of $65 per share, what would be the issue p public after underpricing? How many shares would the company need to sell? Note: Round intermediate calculations to 2 decimal places. Round your answers to 2 decimal places. Enter "Number answer in millions. 4 Issue price Number of shares million b. How much money will the investment banking syndicate earn on the sale? Note: Round intermediate calculations to 2 decimal places. Enter your answer in millions rounded to 2 decimal places. Investment bankers' revenue million

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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An investor is considering purchasing one of the following three stocks. Stock X has a market capitalization of $7 billion, pays a relatively high dividend with little increase in earnings, and has a P /E ratio of 11. Stock Y has a market capitalization of $62 billion but does not currentlypay a dividend. StockY has a P /E ratio of 39. Stock Z, a housing industry company, has a market capitalization of $800 million and a P /E of 18.a.Classify these stocks according to their market capitalizations.b.Which of the three would you classify as a growth stock? Why?c.Which stock would be most appropriate for an aggressive investor?d.Which stock would be most appropriate for someone seeking a combination of safety and earnings?
Give typing answer with explanation and conclusion A share of common stock is paying $3.50 per share, but the corporation only pays 40% of its earnings as cash dividends. The anticipated growth of this stock is 8%. Find the value of this stock if an investor wants a yield of 10%. If the stock is selling for $45, what is the expected yield?
You believe that Rose, Incorporated, stock is going to fall and you've decided to sell 900 shares short. If the current share price is $52, construct the equity account balance sheet for this trade. Assume the initial margin is 65 percent. Note: Do not round intermediate calculations. Input all amounts as positive values. Assets Proceeds from sale Initial margin deposit Total Liabilities and account equity Short position Account equity Total
How I RESOLVE THIS PROBLEM Sun instrument expects to issue new stock at $34 a share with estimated flotation costs of 7 percent of the market price. The comapny currently pays a $ 2.10 cash dividend and has a 6 percent growth rate. What are the costs of retained earnings and new common stock?
Caspian Water needs to raise $59.00 million by issuing additional shares of stock. If the market estimates Caspian Water will pay a dividend of $2.12 next year (D1 2.12), which will grow at 3.99% forever and the cost of equity to be 12.82%then how many shares of stock must the firm sell? 1 ) None of the answers in this list is within 100 shares of the correct answer 2) 312,890 3) 2,457,406 4 ) 4,128,970 5 ) 915,939 6 ) 2.975,934
Bha
Q: Corn, Inc., has an odd dividend policy. The company has just paid a dividend of $6 per share and has announced that it will increase the dividend by $2 per share for each of the next four years, and then never pay another dividend. suppose you require an 11 percent return on thecompany’s stock.Required:a) how much will you pay for a share today?b) Is the value of this stock dependent upon how long you plan to hold it? would this affect the value of the stock today?c) What happens if a company has a constant growth g that exceeds its cost of capital ks?Will many stocks have expected g> ks in the short run? In the long run (that is, forever)?
The current market price for common shares of Delta Company is $30. Call options on these shares currently trade at $2.35, and come with a $46.35 exercise price. If the stock’s market price rose to $51 what would be the percentage rate of return? give a rounded number looking like this 100.4 that is not the right answer
A company's current stock price is $35. Which of the following securities would cause Diluted EPS to be different than Basic EPS? (check all that apply) Preferred stock that pays $10 dividends per share per year Convertible debt that increases EPS if converted Vested stock options with an exercise price of $40 Convertible debt that reduces EPS if converted Vested stock options with an exercise price of $30
YNWA Limited has asked you to calculate the return on its ordinary shares to help in its calculation of its weighted average cost of capital (WACC). YNWA has 2,000,000 ordinary shares on issue that have a beta of 1.79. The last dividend was $6.66. If the risk-free rate is 1.73% and the return on the market is 5.63%. What is the required return on one of YNWA's ordinary shares? Record your answer to the nearest four decimal places (e.g., if your answer is 3.40%, then report 0.0340).
A stock sells at $15 per share. a. What is the EPS for the company if it has a P/E ratio of 20? Round your answer to the nearest cent. $ b. If the company's dividend yield is 4 percent, what is its dividend per share? Round your answer to the nearest cent. $ c. What is the book value of the company if the price-to-book ratio is 1.5 and it has 400,000 shares of stock outstanding? Round your answer to the nearest dollar. $
Help me please get the correct solution option match

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