Convex Incorporated sells 50 million shares of stock in an SEO, with a market price of $10 per share. The underwriter charges 65% of the gross proceeds as a fee. How much money was raised in the sale?
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- ACE Ltd has an outstanding shares of 10,000,000 shares. Kimmy Ltd purchases 100,000 shares of ACE Ltd at $4 per share. Transaction cost is $1,000. How much will the company capitalise if the investment is classified at fair value through OCI? Choose one of the following answers. 401,000 None of the above 399,000 400,000Diego has borrowed $197,450 on margin to buy Apple, Inc. (AAPL), which is now trading at $133.75 per share. With this transaction, his initial percentage margin is 37%. His broker, Tyler, states, and Diego agrees, that the maintenance margin is 20%. Based on the given information, what is the equity value in account? A. $200,078.45. B. $174.850.67. C. $139.134.09. D. $115,962.70.Corporation Ltd is considering raisng additional equiry via a rights issue, in the amount of $120,000. It currently has 18,000 ordinary shares outstanding that sell for $32 each. The subscription price will be $28 per share. What is the value of one right?
- An investment bank agrees to underwrite an issue of 15 million shares of stock for Looney Landscaping Corporation. a. The investment bank underwrites the stock on a firm commitment basis, and agrees to pay $10.00 per share to Looney Landscaping Corporation for the 15 million shares of stock. The investment bank then sells those shares to the public for $11.50 per share. How much money does Looney Landscaping Corporation receive? What is the profit to the investment bank? If the investment bank can sell the shares for only $8.50, how much money does Looney Landscaping Corporation receive? What is the profit to the investment bank? b. Suppose, instead, that the investment bank agrees to underwrite the 15 million shares on a best efforts basis. The investment bank is able to sell 13.5 million shares for $10.00 per share, and it charges Looney Landscaping Corporation $0.325 per share sold. How much money does Looney Landscaping Corporation receive? What is the profit to the investment…The Mont Corporation needs to raise $51.3 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The company's underwriters charge a spread of 8.5 percent. The SEC filing fee and associated administrative expenses of the offering are $1,453,000. What are the required proceeds from the sale necessary for the company to pay the underwriter's spread and administrative costs? a. $57,653,551.91 b. $52,753,000.00 c. $54,376,553.85 d. $56,851,955.35Raleigh Corp. has an investment with a carrying value(equity method) on its books of $170,000 representing a30% interest in Borg Company, which suffered a $620,000loss this year. How should Raleigh Corp. handle its proportionateshare of Borg’s loss?
- Black company owned 50,000 ordinary shares which were purchased for P120 per share. During the year, theinvestee distributed 50,000 stock rights to the investor. The investor was entitled to buy one new share for P90 cash and two of these rights. Each share had a market value of P130 and each right had a market value of P20 on the date of issue. What amount should be debited to the investment account if the rights were not accounted for separately?The Sugarland Co. has just gone public. Under a firm commitment agreement, the company received $32.10 for each of the 4.11 million shares sold. The initial offering price was $34.50 per share, and the stock rose to $41.20 per share in the first few minutes of trading. The company paid $906,000 in legal and other direct costs and $252,000 in indirect costs. What was the flotation cost as a percentage of funds raised? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)An investor purchases 1000 shares of a company at GHS20 per share using his own equity of GHS10,000 and borrowing the rest from his broker at 20% per annum. If all the shares were sold one year later at GH¢28.50, calculate (a) the amount of money borrowed from the broker (b) the return on his equity taking into consideration all brokerage fees paid amounting 2.5% of the value of investment both for buying and selling of investment. (c) Return on his investment.
- Perry, Inc. owns a 90% interest in Brown Corp. During 20X6, Brown sold $100,000 in merchandise to Perry at a 30% gross profit. Ten percent of the goods are unsold by Perry at year end. The noncontrolling interest will receive what gross profit as a result of these sales? a. $0 b. $2,700 c. $3,000 d. $27,000The New Word Corporation has 1,000,000 shares outstanding at $45/share. If the firm wishes to raise $15.00 million at a subscription price (North American rights offering) of $30/share, calculate the value of a right.Consider the financial statements for the REIT given below. Assume that the net revenue includes a loss of $4,000,000 on an asset sale. This REIT has issued 1,000,000 shares. Similar REITs are trading at FFO multiples of 10x. What valuation (share price) does this information imply for the REIT? Net Revenue Less: Less: Interest expense Net income O 49.2 O 129.2 O 95.2 89.2 Operating expenses Depreciation and amortization Income from operations $20,000,000 9,800,000 4,400,000 5,800,000 $ 1,280,000 $ 4,520,000