The Board of Directors of Challenger, Inc. has authorized 10,000 shares of stock at a price of $200/share. Currently, there are 7,000 shares issued with 6,000 outstanding. If Challenger, Inc wanted to raise more capital, how much capital could it raise by selling shares? $600,000 $800,000 $1,400,000 $2,000,000
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The Board of Directors of Challenger, Inc. has authorized 10,000 shares of stock at a price of $200/share. Currently, there are 7,000 shares issued with 6,000 outstanding. If Challenger, Inc wanted to raise more capital, how much capital could it raise by selling shares?
$600,000
$800,000
$1,400,000
$2,000,000
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- Hargrave Kitchen & Bath has 6 million shares outstanding at a price of $33.25 per share. The company has decided to raise capital through a rights issue. All shareholders will be issued one right per share. For every five rights held by the stockholder, they can buy one share at a price of $33.25. How much money will this raise, if all shareholders exercise their rights? Round to one decimal place. A. $30.0 million B. $33.3 million C. $39.9 million D. $234.4 million E. $199.5 millionThe Board of Voyager, Inc. has authorized for sale 10,000 shares of common stock at a price of $50/share. The company has 6,000 issued shares and has 1,000 shares held in Treasury. How much money can the company raise in total by issuing new shares of stock? $200,000 $500,000 $350,000 $150,000The Board of Voyager, Inc. has authorized for sale 10,000 shares of common stock at a price of $50/share. The company has 6,000 unissued shares and has 1,000 shares held in Treasury. If the company pays a dividend of $10 per share of stock, how much is the company's total dividend payout? $60,000 $50,000 $30,000 $100,000 2. The Board of Voyager, Inc. has authorized for sale 10,000 shares of common stock at a price of $50/share. The company has 6,000 unissued shares and has 1,000 shares held in Treasury. How much money can the company raise in total by selling and issuing shares of stock? $150,000 $350,000 $500,000 $200,000
- suppose that the Matrix corporation has $120 million of assets, all financed with equity, and that the form has 6 million shares of stock outstanding valued at $40 per share, suppose that management has identified investment opportunities requiring $60 million of new funds and can raise the funds in one of the following three ways: Financing package 1: Issue $60 million equity (3,000,000) shares of stocks at $40 per share) • Financing package 2: Issue $30 million equity (1,500,000) shares of stocks at $40 per share), and borrow $30 million with an annual interest rate 8% • Financing package 3: Borrow $60 million with an interest of 8%. a. Complete the following table for each financing package after the financing capital structure is completed: - Debt Equity No. of Shares Debt-equity ratio Debt-to- Financing package Assets Asset ratio 23 b. Suppose the Matrix Corporation has $27 million of operating earings. Show that the firm's return on assets is 15% c. compute the earnings per share…Aspin Corporation's charter authorizes issuance of 2,600,000 shares of common stock.Currently, 1,200,000 shares are outstanding, and 300,000 shares are being held as treasury stock. The firm wishes to raise $105,000,000 for a plant expansion. Discussions with its investment bankers indicate that the sale of new common stock will net the firm $70 per share. a. What is the maximum number of shares of common stock that the firm can sell without receiving further authorization from shareholders? b. Judging by the data given and your finding in part a,do you think the firm will be able to raise the needed funds without receiving further authorization? c. What must the firm do to obtain authorization to issue more than the number of shares found in part a?Suppose that the Atlantic Sun conference is a for-profit organization that can be bought. Suppose an investor bought 1% of the conference for $3,600,000. Assuming a controlling interest premium of 80%, what is the value of the conference according to the equity shares sold method? $648,000,000 $288,000,000 $360,000,000 $6,480,000
- MoonCorp's current share price is $20 per share and the total share outstanding is 20 million. MoonCorp decides to raise $38 million by placing 2 million shares at $19 each to a group of financial institutions. This issue must be approved by its shareholders because more than 1 million shares are placed with institutions and because there is a transfer of wealth from old to new shareholders. True/False& A hypothetical corporation, Cascade Strategic & Innovative Solutions, has decided to raise capital through a rights offering. The company has 2,000,000 outstanding shares of stock with a market value of $55 per share. Cascade would like to raise an additional $15,000,000 in capital through a rights offering. The company will set the subscription price at $25 per new share. How many new shares will need to be issued? O approximately 272,728 shares 2,600,000 new shares 5,000,000 new shares O 600,000 new sharesYoung Corporation stock currently sells for $32 per share. There are one million shares currently outstanding. The company announces plans to raise $5 million by offering shares to the public at a price of $32 per share. a. If the underwriting spread is 5%, how many shares will the company need to issue in order to be left with net proceeds of $5 million? (Round your answer to the nearest whole.) Number of shares b. If other administrative costs are $61,000, what is the dollar value of the total direct costs of the issue? (Round your answer to the nearest dollar.) Dollar value of total direct costs $ c. If the share price falls by 3% at the announcement of the plans to proceed with a seasoned offering, what is the dollar cost of the announcement effect? (Round your answer to the nearest dollar.) Dollar value of total direct costs $
- You are given the following information about Aisha Enterprises. The company would like to raise capital through shares only. It has five alternative operational periods in which to raise funds. The company has 25,000 ordinary shares at $10 per share. It has 2500 preference shares of $ 100 each. The dividend on preference shares is 8%. The tax rate is 25 % and the interest rate is 15%. The company would like to raise $2 million. You are required to complete an EBIT/EPS Analysis for the company. A B C D E EBIT 400,000 600,000 700,000 800,000 900,000Your company, Ohiobucks (OB), hires an investment bank to underwrite an issue of 10 million shares of OB stock on a best-effort basis. The investment bank sells 8 million shares and charges OB $0.225 per share sold. The price of each share is $10.50. How much will the investment bank earn after the issuance? A. $7.0 MM B. $7.5 MM C. $1.8 MM D. $1.0 MMThe capital structure of DCF Enterprises Inc. consists of 18 million shares of common stock and 1 million warrants. Each warrant gives its owner the right to purchase one share of common stock for an exercise price of $17. The current stock price is $26, and each warrant is worth $10. What is the new value of the company? What is the new stock price?