Flotation Costs and Issue Size

FratBro23
Category:
Price: \$5 USD

Question description

Answer the following questions in an Excel document.  Solve using Excel formulas (preferred) or clearly write out the steps you took to calculate your answers.  Round any dollar amounts to the nearest dollar (\$1,500,074) and any percentages to two decimals (9.56%).

Study Problem 13-5:  D. Butler Inc. needs to raise \$14 million. Assuming that the market price of the firm’s stock is \$95, and flotation costs are 10 percent of the market price, how many shares would have to be issued? What is the dollar size of the issue?

(Top Tutor) Daniel C.
(997)
School: Duke University
Studypool has helped 1,244,100 students

1822 tutors are online

04/29/2013
04/29/2013
04/29/2013
04/29/2013
04/29/2013

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors