Devine Linens (DL) must raise $14,000,000 to support future growth. If it raises the funds by issuing stock, DL must pay an investment banker 5 percent of the total amount issued plus $250,000 in other costs associated with the issue. What is the amount of stock that DL must issue to net $14,000,000 after flotation costs?
A. $14,962,500B. $14,950,000C. $14,737,092D. $15,000,000E. $13,537,500
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Devine Linens (DL) must raise $14,000,000 to support future growth. If it raises the funds by issuing stock, DL must pay an investment ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
A small apartment building has a NOI of $40,000, interest expense of $14,000 and annual depreciation of $6,000. Assuming a 30% tax bracket, what is its income tax liability?
Answers (1)
Bonds are popular source of financing because: a. The bondholders can always convert their bonds into stock if they choose. b. Financial analysts tend to downgrade a company that has raised large amounts of cash by frequent issues of stock. c.
Answers (1)
Items held for sale in the normal course of business are referred to as
Answers (1)
Which of the following is a non programmed decision?
Answers (1)
Ramon, a single taxpayer with no dependents, has adjusted gross income for 2018 of $98,000 and his itemized deductions total $19,000. What taxable income will Ramon show in 2018? a.$74,850 b.$87,650 c.$74,950 d.$86,000 e.$79,000
Answers (1)
New Questions in Business
The economy of Atlantia is defined by the private ownership of the means of production. Although products produced and prices are based on market factors, the government intervenes as a regulator to ban harmful products and to set a minimum wage.
Answers (1)
1. Economic profit is:A) less than accounting profit if implicit costs exist. B) always equal to accounting profit. C) greater than accounting profit if implicit costs exist. D) less than accounting profit if implicit costs are zero.
Answers (1)
Consumer surplus: A. is the difference between the current market price and the cost of production for the firm. B. is the difference between the maximum amount a person is willing to pay for a good and its current market price. C.
Answers (1)
Builtrite Furniture just paid an annual dividend of $2.50 last week and investors' believe that dividends will continue to grow at a 8% rate into the future. The current price of Builtrite's common stock is $76.
Answers (1)
When building a new mall what would the input be?
Answers (1)