An online medical advice company just completedan IPO with an investment bank on a firm-commitment basis. The firm issued five millionshares of common stock, and the underwritingfees were $2.20 per share. The offering price was$27.60 per share.(a)Your answer is correct.What were the total proceeds from thecommon-stock sale?Total proceeds $138.000,000eTextbook and MediaAttempts: 2 of 3 used(b)How much money did the company receive?Net proceeds to firm $eTextbook and MediaSave for LaterAttempts: 0 of 3 used Submit Answer(c)The parts of this question must be completed inorder. This part will be available when youcomplete the part above.

The net proceed is the total amount that will received to the organization for the issuing of stock…

Answered: An online medical advice company just…

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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You owned 300 shares of Microsoft stock. But you just sold 100 shares this morning. Which one of the following statements best describes the stock sale transaction? Group of answer choices a. This is an example of a secondary market transaction. b. This is an example of primary market transaction. c. This is an example of an exchange of physical assets. d. This is an example of money-market transaction.
Case D: Miller Bikes is a national chain of upscale bicycle shops. The company has followed a successful strategy of locating near major universities. Miller has the opportunity to expand into several new markets but must raise additional capital. The company has engaged in the following transactions: • Issued 45,000 additional shares of common stock. The stock has a $1 par value. The shares sold for $25 per share. • Issued bonds. These bonds have a face value of $1,000,000 and a coupon rate of 10 percent. The bonds mature in 10 years and pay interest semiannually. When the bonds were issued, the annual market rate of interest was 8 percent. Required: 1. Record the sale of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2. Record the issuance of the stock. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No A 8 C Transaction 1a 1b. 02 Cash Bonds…
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1. A student remarks: "135,000,000 shares of General Electric were sold yes- terday on the New York Stock Exchange, at an average price of $25 per share. That means General Electric just received over $3.4 billion from investors.” Briefly explain whether you agree with the student's analysis.
Video Excel Online Structured Activity: ROE and ROIC Baker Industries' net income is $25000, its interest expense is $5000, and its tax rate is 40%. Its notes payable equals $27000, long-term debt equals $75000, and common equity equals $240000. The firm finances with only debt and common equity, so it has no preferred stock. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. X Open spreadsheet What are the firm's ROE and ROIC? Round your answers to two decimal places. Do not round intermediate calculations. ROE ROIC Check My Work % % Reset Problem
Lulu Industries is in the process of selling shares in an auction IPO. At the end of the bidding period, Lulu's investment bank has received the following bids: Number of Shares Bid 50,000 25,000 25,000 100,000 125,000 Price ($) $19.50 $19.25 $19.10 $19.00 $18.75 $18.50 $18.25 $18.00 $17.75 $17.50 What will the offer price of these shares be if Lulu is selling 0.5 million shares? $18.75 $19.10 $18.50 75,000 150,000 240,000 80,000 125,000 $18.25
Plz solve!!
Case D: Miller Bikes is a national chain of upscale bicycle shops. The company has followed a successful strategy of locating near major universities. Miller has the opportunity to expand into several new markets but must raise additional capital. The company has engaged in the following transactions: Issued 45, 600 additional shares of common stock. The stock has a $1 par value. The shares sold for $25 per share. Issued bonds. These bonds have a face value of $ 1,060,000 and a coupon rate of 10 percent. The bonds mature in 10 years and pay interest semiannually. When the bonds were issued, the annual market rate of interest was 8 percent. Required: Record the sale of the bonds. Record the issuance of the stock
A firm goes public. The firm receives $38 for each of the 4.5 million shares sold. The initial offering price was $40.25 per share, and the stock rose to $43.15 per share is the first few minutes of trading. The firm paid $2,485,000 in direct legal and other costs and $665,800 in indirect cost. What were the total direct cost of this offer?
The Cincinnati Chili Kitchen has just announced the repurchase of $155,000 of its stock. The company has 45,000 shares outstanding and earnings per share of $3.41. The company stock is currently selling for $76.87 per share. What is the price–earnings ratio after the repurchase? Multiple Choice 21.53 times 23.55 times 22.54 times 23.05 times 20.92 times
I think answer is $5.05 after founding

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