How much will a firm receive in net funding from a firm commitment underwriting of Fairfax Corporation's 180,000 shares priced to the public at $55 if an 8% underwriting spread has been added to the price paid by the underwriter? Additionally, the firm pays $750,000 in legal fees.
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- How much will a firm receive in net funding from a firm commitment underwriting of 300,000 shares priced to the public at $30 if a 10% underwriting spread has been added to the price paid by the underwriter? Additionally, the firm pays $600,000 in legal fees.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. $56,851,955.35An 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…
- An investment bank pays $42.80 per share for 5.3 million shares of GM Company in a firm commitment stock offering. It then can sell those shares to the public for $52 per share.How much money does GM receive?What is the underwriter's spread per share of this financial accounting question?Wiley Solutions Inc. must raise $15,000,000 to support future growth. If it raises funds by issuing stock, WS must pay an investment banker 5 percent of the total amount issued plus $200,000 in other costs associated with the issue. What total stock value must WS issue to net $15,000,000 after flotation costs expense?
- The Scandrick Corporation needs to raise $86 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 offer price is $40 per share and the company's underwriters charge a spread of 8 percent. If the SEC filing fee and associated administrative expenses of the offering are $975,000, how many shares need to be sold? (Do not round Intermediate calculations and enter your answer In shares, not millions of shares, rounded to the nearest whole number, e.g., 1,234,567.) Number of shares offeredThe Whistling Straits Corporation needs to raise $60 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. If the offer price is $21 per share and the company's underwriters charge a spread of 7 percent, how many shares need to be sold? (Do not round intermediate calculations and round your answer to nearest whole number, e.g., 1,234,567.) Number of shares offered 3,133,641The Elkmont Corporation needs to raise $63.8 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 offer price is $22 per share and the company’s underwriters charge a spread of 7.5 percent, how many shares need to be sold?
- The Sullivan Co. needs to raise $78 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. If the offer price is $31 per share and the company's underwriters charge a spread of 7 percent, how many shares need to be sold? In the previous problem, if the SEC filing fee and associated administrative expenses of the offering are $1,425,000, how many shares need to be sold now?United Uninsured Underwriters (U3) needs $192 million to stay in business. If new common stock is issued, U3 must pay its investment banker a fee equal to 8 percent of the total amount issued. The new issue will also require Us to pay $280,000 in fees to its lawyers, printing costs, and other costs associated with the issue. U3 can issue stock at $25 per share. How many shares of common stock must Us issue so that it has $192 million after flotation costs? Show how much of the total dollar amount of the issue will be flotation costs and how much U3 will receive after the flotation costs are paid.Help