Manapella Co. previously had 10 million shares outstanding when an investor bought 1 million shares in order to have 10% proportional ownership. When the firm asked owners to vote on a 5 million share additional issue to raise equity capital, the investor voted yes, but the new issue reduced the investor's proportional ownership. What is the investor's proportional ownership after the stock issue?

Manapella Co. previously had 10 million shares outstanding when an investor bought 1 million shares in order to have 10% proportional ownership. When the firm asked owners to vote on a 5 million share additional issue to raise equity capital, the investor voted yes, but the new issue reduced the investor's proportional ownership. What is the investor's proportional ownership after the stock issue?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 11P

See similar textbooks

Similar questions

According to a company press release, on January 5, 2012, Hansen Natural Corporation changed its name to Monster Beverage Corporation. According to Yahoo Finance, on that day the value of the company stock (symbol: MNST) was $15.64 per share. On January 5, 2018, the stock closed at $63.49 per share. This represents an increase of nearly 306%. A. Discuss the factors that might influence the increase in share price. B. Consider yourself as a potential shareholder. What factors would you consider when deciding whether or not to purchase shares in Monster Beverage Corporation today?
Suppose EBV makes a $6M Series A investment in Newco for 1M shares at $6 per share. One year later, Newco has fallen on hard times and receives a a $6M Series B financing from Talltree for 6M shares at $1 per share. The founders and the stock pool have claims on 3M shares of common stock. Going forward, for brevity we will use the term "employees" to mean "founders and the stock pool". Suppose that Series A has broad-base weighted-average antidilution protection. What is the postmoney valuation? $5M $9M $11M $7M
hello, I need help please
DRK, Incorporated, has just sold 80,000 shares in an initial public offering. The underwriters explicit fees were $48,000. The offering price for the shares was $64, but immediately upon issue, the share price jumped to $68.00. Required:a. What is the total cost to DRK of the equity issue?
Suppose that Home Depot, Inc. (HD) is currently holding shares of Apple Inc. (AAPL) and Autozone Inc. (AZO). It owns 57% of AAPL and 43% of AZO. The market values of shares are $2,910,800 and $5,710,200, respectively. HD has total 48,750 shares outstanding. Based on the efficient market approach, the per-share value of HD is closest to O A. $98.15. OB. $92.70. O C. $84.40. D. $73.79.
If give me wrong answer, then I will report the answer. Want detailed answer with explanation
Dynatech Inc. is considering one of the three following courses of action: (1) paying a $0.40 cash dividend, (2) distributing a 6% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share. Help Dynatech make its decision by completing the following chart (treat each possibility independently): Total assets Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Number of common shares Before Action $1,211,000 $ $262,000 $ 554,000 395,000 949,000 $1,211,000 100,000 $ (1) After Cash Dividend $ $ $ (2) After Stock Dividend $ $ $
Built Rite Corp. is evaluating an extra dividend versus a share repurchase. In either case, $7,500 would be spent. Current earnings are $1.24 per share, and the stock currently sells for $32 per share. There are 5,000 shares outstanding. Ignore taxes and other imperfections. You own one share of stock in this company. If the company issues the dividend, your total investment will be worth ____ as compared to ____ if the company opts for a share repurchase.
FBN Inc. has just sold 100,000 shares in an initial public offering. The underwriter’s explicit fees were $70,000. The offering price for the shares was $50, but immediately upon issue, the share price jumped to $53.a. What is your best guess as to the total cost to FBN of the equity issue?b. Is the entire cost of the underwriting a source of profit to the underwriters?
What Will the share price ??
ed A company has the following balance sheet (market values): Liabilities + Equity Debt Equity Assets Cash Operating Assets 600 1000 400 1200 If the firm has 300, find its fair share price after it repurchases 100 worth of shares: (round your answer to the nearest 0.01)
Suppose that you own 3,400 shares of Nocash Corp. and the company is about to pay a 25% stock dividend. The stock currently sells at $125 per share. a. What will be the number of shares that you hold after the stock dividend is paid? (Do not round intermediate calculations.) Number of shares b. What will be the total value of your equity position after the stock dividend is paid? (Do not round intermediate calculations.) Total value c. What will be the number of shares that you hold if the firm splits five-for-four instead of paying the stock dividend? (Do not round intermediate calculations.) Number of shares held