Question
In: Finance
Nemesis, Inc., has 145,000 shares of stock outstanding. Each share is worth $43, so the company’s...
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Nemesis, Inc., has 145,000 shares of stock outstanding. Each share is worth $43, so the company’s market value of equity is $6,235,000. Suppose the firm issues 32,000 new shares at the following prices: $43, $40, and $35. |
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What will be the ex-rights price and the effect of each of these alternative offering prices on the existing price per share? (Leave no cells blank; if there is no effect select "No change" from the dropdown and enter "0". Round your answers to 2 decimal places, e.g., 32.16.) |
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Solutions
jeff jeffy answered 1 year agoRelated Solutions
Nemesis, Inc., has 119,000 shares of stock outstanding. Each share is worth $41, so the company’s...
Nemesis, Inc., has 119,000 shares of stock outstanding. Each
share is worth $41, so the company’s market value of equity is
$4,879,000. Suppose the firm issues 25,000 new shares at the
following prices: $41, $38, and $33.
What will be the ex-rights price and the effect of each of these
alternative offering prices on the existing price per share?
(Leave no cells blank; if there is no effect select "No
change" from the dropdown and enter "0". Round your answers...
Nemesis, Inc., has 250,000 shares of stock outstanding. Each share is worth $88, so the company’s...
Nemesis, Inc., has 250,000 shares of stock outstanding. Each
share is worth $88, so the company’s market value of equity is
$22,000,000. Suppose the firm issues 62,000 new shares at the
following prices: $88, $82, and $76.
What will be the ex-rights price and the effect of each of these
alternative offering prices on the existing price per share?
(Leave no cells blank; if there is no effect select "No
change" from the dropdown and enter "0". Round your answers...
Left Turn, Inc., has 108,000 shares of stock outstanding. Each share is worth $90, so the...
Left Turn, Inc., has 108,000 shares of stock outstanding. Each
share is worth $90, so the company's market value of equity is
$9,720,000. Required: (a) Suppose the firm issues 18,000 new shares
at the price of $90, what will the effect be of this offering price
on the existing price per share? (Do not round your intermediate
calculations.) (b) Suppose the firm issues 18,000 new shares at the
price of $80, what will the effect be of this offering price...
Left Turn, Inc., has 96,000 shares of stock outstanding. Each share is worth $80, so the...
Left Turn, Inc., has 96,000 shares of stock outstanding. Each
share is worth $80, so the company's market value of equity is
$7,680,000.
(a)
Suppose the firm issues 16,000 new shares at the price of $80,
what will the effect be of this offering price on the existing
price per share? (Do not round your intermediate
calculations.)
(b)
Suppose the firm issues 16,000 new shares at the price of $73,
what will the effect be of this offering price on...
Left Turn, Inc., has 75,000 shares of stock outstanding. Each share is worth $80, so the...
Left Turn, Inc., has 75,000 shares of stock outstanding. Each
share is worth $80, so the company's market value of equity is
$6,000,000. Required: (a) Suppose the firm issues 15,000 new shares
at the price of $80, what will the effect be of this offering price
on the existing price per share? (Do not round your intermediate
calculations.) (b) Suppose the firm issues 15,000 new shares at the
price of $74, what will the effect be of this offering price...
Left Turn, Inc., has 128,000 shares of stock outstanding. Each share is worth $90, so the...
Left Turn, Inc., has 128,000 shares of stock outstanding. Each
share is worth $90, so the company's market value of equity is
$11,520,000.
Required:
(a)
Suppose the firm issues 16,000 new shares at the price of $90,
what will the effect be of this offering price on the existing
price per share? (Do not round your intermediate
calculations.)
(Click to select) -0.25, 0.25,
0.00, 72.00, 54.50
(b)
Suppose the firm issues 16,000 new shares at the price of $78,...
Randy Company has 600,000 shares of common stock outstanding. Each share of common stock has a...
Randy Company has 600,000 shares of common stock outstanding.
Each share of common stock has a par value of $10. Please prepare
journal entries to record the following INDEPENDENT
transactions:
1. Randy’s directors declare a 10% stock dividend on September
1, 2019. On that date, the stock is trading on the market at $30
per share.
2. Randy purchases 1,000 of its outstanding shares on January
10, 2019 for $20 per share.
3. On April 1, 2019, Randy reissues 2,000...
Randy Company has 600,000 shares of common stock outstanding. Each share of common stock has a...
Randy Company has 600,000 shares of common stock outstanding.
Each share of common stock has a par value of $10. Please prepare
journal entries to record the following INDEPENDENT
transactions:
1. Randy’s directors declare a 10% stock dividend on September
1, 2019. On that date, the stock is trading on the market at $30
per share.
2. Randy purchases 1,000 of its outstanding shares on January
10, 2019 for $20 per share.
3. On April 1, 2019, Randy reissues 2,000...
Question 7 8 Marks A company has 1,000,000 shares outstanding, and each share is currently worth...
Question 7 8 Marks
A company has 1,000,000 shares outstanding, and each share is
currently worth R20. The shares have beta of 1.2. The company also
has 10-year bonds outstanding with a par value of R10,000,000, a
coupon rate of 6%, and yield-to-maturity of 7%. The yield on the
bonds is currently 2 percentage points above the risk-free rate and
4 percentage points below the expected return on the overall
market.
Required:
7.1. What is the company’s WACC if the...
P15-8 Price Dilution [LO3] Left Turn, Inc., has 176,000 shares of stock outstanding. Each share is...
P15-8 Price Dilution [LO3]
Left Turn, Inc., has 176,000 shares of stock outstanding. Each
share is worth $100, so the company's market value of equity is
$17,600,000.
Required:
(a)
Suppose the firm issues 22,000 new shares at the price of $100,
what will the effect be of this offering price on the existing
price per share? (Do not round your intermediate
calculations.)
(Click to select) 0.25, 0.00,
80.00, 60.50, -0.25
(b)
Suppose the firm issues 22,000 new shares at...
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