Business, 28.11.2019 23:31 chaaaa

Fishwick enterprises has 2 shares outstanding, half of which are owned by jennifer fishwick and half by her cousin. the two cousins have decided to sell 100,000 shares in an ipo. half of these shares would be issued by the company to raise new cash, and half would be shares that are currently held by jennifer fishwick
suppose that the shares are sold at an issue price of $32 but rise to $80 by the end of the first day’s trading. suppose also that investors would have been prepared to buy the issue at $62.

a. what percentage of the company will jennifer own after the issue?
b. what will her holding be worth at the end of the first day’s trading?
c. suppose the issue had been priced at $62. how many shares would the company have needed to sell to raise the same gross proceeds from the ipo?
d. what in this case would be jennifer’s wealth (cash plus the value of her remaining holding)? (enter your answer in millions.)
e. what is the cost of underpricing to jennifer in dollars? (enter your answer in millions.)

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 21:30

1. gar principles or "the principles"are intended to do what?

Answers: 2

Answer

Business, 21.06.2019 23:10

You are the new chief information officer for the video-game developer, necturus games. the company has recently undergone a major expansion of its primary product, and you must staff up the is department and determine the best way to develop new game "capsules" for the game, "escape velocity."

Answers: 1

Answer

Business, 22.06.2019 04:00

Wallis company manufactures only one product and uses a standard cost system. the company uses a predetermined plantwide overhead rate that relies on direct labor-hours as the allocation base. all of the company's manufacturing overhead costs are fixed—it does not incur any variable manufacturing overhead costs. the predetermined overhead rate is based on a cost formula that estimated $2,886,000 of fixed manufacturing overhead for an estimated allocation base of 288,600 direct labor-hours. wallis does not maintain any beginning or ending work in process inventory.

Answers: 2

Answer

Business, 22.06.2019 11:00

What is the correct percentage of texas teachers charged with ethics violations each year?

Answers: 2

Answer

You know the right answer?

Fishwick enterprises has 2 shares outstanding, half of which are owned by jennifer fishwick and half...

Questions