Angina Inc has 5 million shares outstanding The firm is considering issuing an additional 1 million shares. After selling these shares at $21 per share offering price and netting 95% of the sale proceeds, the firm is obligated by an earlier agreement to sell an additional 251,000 shares at 50% of the offering price in total, how much cash will the firm net from these stock sales? The net proceeds from these stock sales is 5 Roond to the nearest dollar)

Angina Inc has 5 million shares outstanding The firm is considering issuing an additional 1 million shares. After selling these shares at $21 per share offering price and netting 95% of the sale proceeds, the firm is obligated by an earlier agreement to sell an additional 251,000 shares at 50% of the offering price in total, how much cash will the firm net from these stock sales? The net proceeds from these stock sales is 5 Roond to the nearest dollar)

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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A full equity firm has 5,000 shares outstanding worth $7 each. They are planning on issuing $10,000 of new perpetual debt at the 8% market rate of interest and using the proceeds to buy up stock. The effective tax rate is 25%. What is the change in the share price if they make the debt for equity exchange? Multiple Choice O $.50 per share $.20 per share $.80 per share $.16 per share
Zang Industries has hired the investment banking firm of Eric, Schwartz, & Mann (ESM) to help it go public. Zang and ESM agree that Zang’s current value of equity is $60 million. Zang currently has 4 million shares outstanding and will issue 1 million new shares. ESM charges a 7% spread. What is the correctly valued offer price, rounded to the nearest penny? How much cash will Zang raise net of the spread (use the rounded offer price)?
Marseille Manufacturing (MM) stock is currently trading €42 per share, there are 12 million shares outstanding and I own 10% (1.2 million shares). MM is planning a SEO to raise an additional €100 million (proceeds to the firm). MM expects the stock price to drop 4% upon announcing the SEO. Assuming that 10% of the shares sold in the SEO are secondary shares, how many shares should MM plan to sell in order to receive €100 million? Assuming that I did not buy or sell any shares in the SEO, what percentage of MM will I own after the SEO?
LYFT IPO was issued at $72/share. Before the IPO, Lyft had 240 million class A shares outstanding and wanted to issue additional 30 million class A shares. On top of that, Lyft gave its underwriters options to purchase another 5 million shares at $72 each. When Lyft stock price fell below the IPO price of $72, to support the stock price, up to how many shares the underwriters could buy from the open market without losing money? 5 million shares 30 million shares 35 million shares 240 million shares 275 million shares
Transco is considering acquiring Tenco. Tenco's current stock price is $23. What is the maximum price per share that Transco should offer based on the following data for Tenco: PV of future cash flows $200 million, 20 million outstanding shares, no debt, and discount rate of 12%?
Rally inc, is an all equity firm with assets worth $25B and 10B shares outstanding. Rally plans to borrow $10B and use funds to repurchase shares. Rally’s corporate tax rate is 35% and Rally plans to keep its outstanding debt equal to $10B permanently. Suppose Rally offers $3 per share, and shareholders tender their shares at this price. What will be Rally’s share price after the repurchase?
Damron, Incorporated, has 205,000 shares of stock outstanding. Each share is worth $79, so the company’s market value of equity is $16,195,000. Suppose the firm issues 44,000 new shares at the following prices: $79, $73, and $67. What will be the ex-rights price and the effect of each of these alternative offering prices on the existing price per share?
In the IPO, the firm issued 3,000,000 new shares. The initial price was $18.00/share with investment bankers retaining $1.26 as fees. The final first-day closing price was $23.50. 1. What were the total proceeds from this offering

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