Question
In: Finance
The Raven Co. has just gone public. Under a firm commitment agreement, Raven received $17.40 for...
|
The Raven Co. has just gone public. Under a firm commitment agreement, Raven received $17.40 for each of the 20 million shares sold. The initial offering price was $19.50 per share, and the stock rose to $21.60 per share in the first few minutes of trading. Raven paid $600,000 in direct legal and other costs and $200,000 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.) |
Solutions
jeff jeffy answered 1 year agoRelated Solutions
The Raven Co. has just gone public. Under a firm commitment agreement, Raven received 18.25 for...
The Raven Co. has just gone public. Under a firm commitment
agreement, Raven received 18.25 for each of the 8 million shares
sold. The initial offering price was $19.89 per share, and the
stock rose to $26.06 per share in the first few minutes of trading.
Raven paid $1,360,000 in direct legal and other costs, and $408,000
in indirect costs. What was the flotation cost as a percentage of
funds raised?
The Collins Co. has just gone public. Under a firm commitment agreement, the company received $33.50...
The Collins Co. has just gone public. Under a firm commitment
agreement, the company received $33.50 for each of the 4.25 million
shares sold. The initial offering price was $35.90 per share, and
the stock rose to $44.00 per share in the first few minutes of
trading. The company paid $920,000 in legal and other direct costs
and $280,000 in indirect costs.
What is the net amount raised? (Do not round intermediate
calculations. Enter your answer in dollars, not...
The Huff Co. has just gone public. Under a firm commitment agreement, the company received $17.64...
The Huff Co. has just gone public. Under a firm commitment
agreement, the company received $17.64 for each of the 3.2 million
shares sold. The initial offering price was $22.50 per share, and
the stock rose to $24.15 per share in the first day of trading. The
company paid $984,900 in direct legal and other costs and incurred
$340,000 in indirect costs. What was the flotation cost as a
percentage of the net amount raised?
A- 38.56%
B-40.32%
C-41.68%
D-40.20%
The Rabe Company has just gone public under a firm commitment agreement and sold (i.e. floated)...
The Rabe Company has just gone public under a firm commitment
agreement and sold (i.e. floated) 4.1 million shares to the public.
Rabe stock went public (i.e. begin to trade over the exchange) at
$34.40. The first day closing price of Rabe stock was $41 per
share. Rabe paid $905,000 in legal and other direct costs, $250,000
in indirect costs, and an underwriter’s fee of $2.40 per share.
Required:
i. Compute
the net amount raised by the Boeing Company as a...
Under a firm commitment agreement, Zeke, Co. went public and received $35.25 for each of the...
Under a firm commitment agreement, Zeke, Co. went public and
received $35.25 for each of the 8.9 million shares sold. The
initial offer price was $38 and the stock rose to $41.38. The
company paid $560,000 in direct flotation costs and $215,000 in
indirect costs. What was the flotation cost as a percentage of
funds raised?
Under a firm commitment agreement, Zeke, Co. went public and received $35.25 for each of the...
Under a firm commitment agreement, Zeke, Co. went public and
received $35.25 for each of the 8.9 million shares sold. The
initial offer price was $38 and the stock rose to $41.38. The
company paid $560,000 in direct flotation costs and $215,000 in
indirect costs. What was the flotation cost as a percentage of
funds raised?
a)27.63
b)8
c)17.68
d)29.14
e)23.6
XYZ has received a firm commitment from its underwriter to purchase 1.5 million shares of stock...
XYZ has received a firm commitment from its underwriter to
purchase 1.5 million shares of stock that will be marketed to the
general public at $60 per share. The underwriter's spread is $3.00
per share and the issuing firm will pay an additional $2million in
legal and other fees. The issue was fully sold on the first day and
the stock closed at $80.00 on that day. Calculate both the direct
expense of issuance and the indirect (i.e., underpricing) expense....
ABC C.o just completed an IPO with an investment bank on a firm-commitment basis. The firm...
ABC C.o just completed an IPO with an investment bank on a
firm-commitment basis. The firm issues 5 million shares of common
stock, and the underwriting fees were $2.09 per share. The offering
price was $30.00 per share.
(a) What were the total proceeds from the common stock sale?
Total Proceeds $ ______________-.
4. The cash flows of a firm that has just conducted an Initial Public Offering (IPO)...
4.
The cash flows of a firm that has just conducted an Initial
Public Offering (IPO) are expected to be either £10 million per
annum for 10 years and zero afterwards with probability
‘p’ or £5 million forever with probability
(1-p). The risk-adjusted discount rate for this
firm is 10% per annum. I. Express the current fundamental value of
the firm in terms of ‘p’. II. If the current
stock market value of the firm is £55 million, what is...
[Investment Planning] Temoc is a high tech company that has recently gone public, and trades using...
[Investment Planning] Temoc is a high tech company that has
recently gone public, and trades using the symbol TEMO. Comet is a
rival high tech company that has also recently gone public, and
trades using the symbol COME. Currently, the price of one share of
each company is $10. Based on extensive market research and
financial analysis, you have forecast that the price of one share
of TEMO one year from now can be modeled as a normal distribution,
with...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Part A. Outline and explain all the VARIABLES and FACTORS that determine valuation and valuation analysis...
- Study the file polygon.h. It contains the header file for a class of regular polygons. Implement...
- what challenges can myths and stereotypes create for american indians?
- Date accuracy is very important because dates are used for discounts, payment terms and many reports....
- How many milliliters of concentrated hydrochloric acid solution (36.0% HCl by mass, density = 1.18 g/mL)...
- How does the rotating membership of the FOMC work? Why does the president of New York's...
- A gym owner is considering opening a location on the other side of town. The new...
ADVERTISEMENT