Magenta Corporation wants to raise $50 million in a seasoned equity offering, net of all fees. Magenta stock currently sells for $10 per share. The underwriters will require a spread of $0.50 per share, and indicate that the issue must be underpriced by 5 percent. In addition to the underwriter's fee, the firm will incur $1 million in legal, accounting, and other costs. How many shares must Magenta sell?
Answers
Magenta Corporation must sell 5,263,157 shares in order to raise $50 million in a seasoned equity offering, considering the underwriters' spread, the underpricing requirement, and additional costs.
To calculate the number of shares Magenta Corporation must sell, we need to consider several factors. First, the net proceeds from the offering should be $50 million, accounting for all fees and costs. The underwriters require a spread of $0.50 per share, meaning the offering price will be $10 - $0.50 = $9.50 per share. Additionally, the underwriters indicate that the issue must be underpriced by 5 percent, so the offer price will be further reduced to $9.50 - (5% of $9.50) = $9.02 per share.
Now, we can calculate the number of shares by dividing the desired proceeds ($50 million) by the offer price ($9.02 per share). Thus, 5,263,157 shares must be sold to raise $50 million, taking into account the underwriters' spread, underpricing requirement, and additional costs.
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Related Questions
how much do you have to go to work for a baby delivery nurse job (not being lazy actual question for my career research elective)
Answers
Answer:
Alot
Explanation:
It depends on how you go about getting your RN
outline 4 reasons why most developing countries rely on extractive levels of production
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Explanation:
The World Bank helps developing countries manage their natural resource wealth responsibly and sustainably, in a way that contributes to sustainable growth and development, protects communities and reduces carbon emissions.
What grade are y’all in ? So I can give some advice ! Middle school or high school ?
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Answer:
Im in middle school, 7th grade
Explanation:
Some advice would be great :)
Which type of bankruptcy leaves your credit report sooner?
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have a great day!
What marketing era focused on product innovation rather than satisfying the needs of individual customers?
Answers
Production Oriented Era focused on product innovation rather than satisfying the needs of individual customers
Production Oriented Era
From the advent of capitalism until the middle of the 1950s, businesses with a production orientation dominated the market. The general belief was that a high-quality product will automatically sell itself. Due to the high demand and the scarcity of the commodity during this time period, this strategy was successful for many firms.When was the era focused on production?Production Orientation Era: 1800s–1920s (1800s-1920s)
As a result, company efforts were concentrated on boosting output quantity rather than quality. To reduce costs and increase sales, producers used the mass manufacturing approach.To Learn more about Production Oriented Era, Click the links.
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Which of the following is a true statement regarding operating costs:
They are fixed expenses.
They are not directly related to production.
They occur once or twice a year.
Only some businesses have them.
Answers
Answer:
They are not directly related to production.
Explanation:
Operating expenses are the costs incurred in running the affairs of a business on a day-to-day basis. They refer to the expenses associated with the maintenance and administration of a business. Operating expenses are also operational costs and include rent, machinery, payroll services, utilities, uniforms, and office supplies. operating cost also covers overhead expenses as well as the cost of goods sold
An international business is a firm that
Part 2
A. hires non-U.S. citizens.
B. produces a wide range of products.
C. is not from the United States.
D. engages in international trade or investment.
Answers
Option D: An international business is a firm that engages in international trade or investment.
Therefore, the correct answer is option D. An international business is a company that conducts business across national borders. This can include importing and exporting goods, investing in foreign markets, and operating in multiple countries.
It is not necessarily defined by the nationality of its employees, the range of products it produces, or the country in which it is headquartered. International business refers to the trade of goods, services, technology, capital and/or knowledge across national borders and at a global or transnational scale. It involves cross-border transactions of goods and services between two or more countries.
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Dawn's credit card company charges 2.5% per month, for any unpaid amount. For the month, Dawn purchased $650.00 worth of goods and services. If she pays a minimum of $50.00 What is the remaining balance?
i need help asap
Answers
Answer:
$615
Explanation:
The interest rate on Dawn's credit card is 2.5%
Purchases for the month are $650.
Payments made in the month is $50.
Balance will be
Purchases balance and the interest on the credit card
Purchase balance : $650-$50 = $600
Interest for the month
=2.5% x 600
=0.025 x 600
=$15
Balance will be $600 + $15= $615
The pros and cons of new product concepts are analyzed during the idea generation phase of new product development.
True
False
Answers
When the stock market as a whole is rising in value then it is referred to as a bear market. True or false?
Answers
Answer: False
Explanation: A bear market is when a market experiences prolonged price declines. It typically describes a condition in which securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment.
which phase in the business cycle is defined as the period of lowest economic activity?
Answers
The lowest point in economic activity is known as the trough period in the trade cycle.
Which definition of business is the best?An organization or entrepreneurial entity engaging in mercantile, industrial, or professional life is referred to as a business. Organizations can be for-profit corporations or charitable institutions. Limited liability firms, sole proprietors, corporations, and partnerships are among the several forms of businesses. Businesses that are for revenue function to make a profit, whereas those that are nonprofit do so to further a philanthropic cause.
What characterizes a prosperous enterprise?The most prosperous organizations place a high priority on providing excellent customer service and a great client experience. Making goods and services that consumers desire is the first step. However, concentrating on your clients extends outside the products.
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A sold watch to B at a 20% gain and B sold it to C at a loss of 10%. If C bought the watch for Rs. 216, at what price did A purchase it?
Rs. 150
Rs. 276
Rs. 200
Rs. 216
Answers
A purchased the watch for Rs. 200. Option c is Correct.
A fresh deal for 1,000 aircraft was made by the government. Additionally, you should use "purchase" when you require a noun form, as in the sentence: You made a wise purchase when you bought petrol before the price increased. In conclusion, try to use "buy" for straightforward activities and "purchase" for more official transfers of money for things.
Let's assume that the price at which A purchased the watch is x.
A sold the watch to B at a 20% gain, which means B paid 120% of the price A paid:
120% of x = 1.2x
B sold the watch to C at a loss of 10%, which means C paid 90% of the price B paid:
90% of 1.2x = 1.08x = Rs. 216
Solving for x, we get:
x = Rs. 200
Therefore, A purchased the watch for Rs. 200. Option c is Correct.
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Larkspur Corporation manufactures drones. On December 31, 2019, it leased to Althaus Company a drone that had cost $104,800 to manufacture. The lease agreement covers the 5-year useful life of the drone and requires 5 equal annual rentals of $37,400 payable each December 31, beginning December 31, 2019. An interest rate of 7% is implicit in the lease agreement. Collectibility of the rentals is probable. Prepare Larkspur’s December 31, 2019, journal entries
Answers
Answer:
First find the present value of the lease. Payments are constant and fixed so this is an annuity. As it is to be paid from the beginning, it is an Annuity due.
= Annuity * Present value interest factor of annuity due, 5 years, 7%.
= 37,400 * 4.3872
= $164,081
Date Account Details Debit Credit
Dec. 31, 2019 Lease Receivable $164,081
Cost of goods sold $104,800
Sales $164,081
Inventory $104,800
Date Account Details Debit Credit
Dec. 31, 2019 Cash $37,400
Lease Receivable $37,400
The value proposition for the AARP brand is seen in what kinds of benefits for the members? (Select 3)
Answers
The value proposition for the AARP brand may be observed in the kind of benefits provided to members and efforts made to better the lives of members. The AARP name's security and reputation. The standard of the things on offer.
What constitutes an effective proposition statement?
Every value proposition should address a customer's problem and position your firm as the solution provider. A strong value proposition may emphasize what distinguishes you from rivals, but it should always center on how customers interpret your worth. A value proposition should describe how a product meets a demand, articulate the intricacies of its additional advantage, and clarify why it is superior than similar items on the market. The optimal value proposition is concise and addresses a customer's primary decision-making drivers.
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Planning includes tasks related to each of the ____ project management knowledge areas.
Answers
Planning includes tasks related to each of the ten project management knowledge areas.
Project management is the planning and coordination of a company's resources to advance the completion of a particular work, event, or duty. Managed resources include people, money, technology, and intellectual property, and they can be used for one-time projects or ongoing operations.
Project management is frequently linked to industries like engineering, building, and, more recently, healthcare and information technology (IT), which frequently require a complicated set of components to be finished and connected in a certain way to produce a usable output. A project's preparation, start, execution, monitoring, and closure are all fundamental components of project management.
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If barbara is only able to purchase 20 bags of chocolate-covered peanuts, the maximum price she is willing and able to pay for each bag is ________ cents.
Answers
Based on the fact that Barbara is only able to purchase 20 bags of chocolate-covered peanuts, the maximum price she is willing and able to pay is $0.70.
What is the maximum price Barbara is willing to pay?The maximum price that Barbara is willing and able to play is the price that tallies with the number of bags of chocolate-covered peanuts that she demands per month.
Barbara demands 20 bags of chocolate-covered peanuts which means that the maximum she is willing to pay from the table is $0.70.
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A dividend is _____.
money you earn when you sell property for more than the purchase price
money earned from a savings account
money you pay when buying stock
money a company shares with the stockholders
Answers
Answer:
d. money a company shares with the stockholders
Explanation:
A dividend is money a company shares with the stockholders.
hope it helps:)
mark brainliest!
should be correct !
A hurricane damages crops in Florida. What factor will impact economic conditions?
unemployment rates
NI natural disaster
inflation rates
government policy
Answers
Answer:
NI natural disaster i think
Explanation:
have my points uf7ttg vgh
Answers
Answer:
thanks
Explanation:
What did Alexander Hamilton want for the economy?
Answers
Hamilton advocated for a federal charter for a national financial institution as part of his plan to restructure the American economy. A Bank of the United States was his suggestion.
What was the economic objective of Alexander Hamilton?In Hamilton's proposal, the federal and state debts would be paid off by the government. He demanded that the government acquire all of the bonds issued before 1789 by the federal and state governments. Then, he intended to issue fresh bonds to settle the previous debts.
What three points made up Hamilton's economic strategy?The elements of Hamilton's particular financial strategy were: government obligations incurred during the war. financing for the government's operations. Concentrate on business and industry
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a.Which point on the graph shows that if the country produces 8 million alarm
clocks, it can only produce 16 million DVD movies?
b.Which point on the graph shows that if the country produces 6 million DVD
movies, it can produce 20 million alarm clocks?
c. If the country produces 25 million alarm clocks, how many DVD movies can it
produce?
d. If the country produces 20 million DVD movies, how many alarm clocks can it
produce?
e. How many alarm clocks can the country produce if it produces 11 million DVD
movies?
f. What does Point G represent on the graph?
g. What does Point F show on the graph?
Answers
a. The point on the graph shows that if the country produces 8 million alarm clocks, it can only produce 16 million DVD movies is point B.
b. The point on the graph that shows if the country produces 6 million DVD
movies, it can produce 20 million alarm clocks is point D.
c. If the country produces 25 million alarm clocks, the number of DVD movies it can produce is 0.
d. If the country produces 20 million DVD movies, the number of alarm clocks it can produce is 0.
e. The number of alarm clocks it can produce is 15 million.
f. Point G on the graph represents inefficient production.
g. Point F on the graph show unattainable production levels.
What is the production possibility curve?
The production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised. The PPC is concave to the origin.
Point outside the curve or to the right of the curve means that the production level is not attainable given the level of resources Points inside the production possibilities curve means that the nation's resources are not being fully utilised.
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Even when economic indicators show that the economy is down, small businesses often thrive. Think of a small business in your community that would do well, even if people did not have a lot of extra money to spend, and explain the advantages it has over larger businesses.
Answers
Answer:
A drug store is a type of business that is likely to do well even in an economic recession.
This is because drug stores sell an essential good, that often has a high price, and that is needed by many people, specially those who suffer from chronic diseases.
In other words, people will likely reduce their consumption of many other goods before reducing their consumption of prescription drugs.
In a high-quality residential property, an unattractive kitchen that does not have enough cabinet space to meet market tastes and demands will likely result in: Physical depreciation Functional obsolescence External obsolescence Curable physical deterioration
Answers
An unattractive kitchen with inadequate cabinet space in a high-quality residential property will likely result in functional obsolescence.
Functional obsolescence refers to a loss of value caused by a property feature that is no longer desirable to potential buyers or renters. In this case, a kitchen that does not meet market tastes and demands will not be appealing to potential residents, resulting in lower demand and ultimately, lower property value. While physical depreciation and curable physical deterioration may also be factors in a poorly maintained kitchen, functional obsolescence is specifically related to a lack of market appeal and can be addressed through renovation or remodeling to meet current trends and demands. External obsolescence, on the other hand, refers to factors outside of the property that negatively impact its value, such as environmental pollution or undesirable nearby developments.
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A graphic organizer is a visual representation.
Please select the best answer from the choices provided
•T
•F
Answers
The given statement "A graphic organizer is a visual representation" is True because graphic organizers are an effective way to improve information retention and comprehension, making them a valuable tool in both personal and professional contexts.
A graphic organizer is a visual representation that helps individuals organize information in a clear and concise manner. This can be in the form of a diagram, chart, or other types of visual aids that make it easier to understand complex concepts or ideas. Graphic organizers can be used in various contexts, such as in educational settings to help students understand and remember important information, or in business, settings to help individuals organize their thoughts and ideas for presentations or reports.
One of the benefits of using graphic organizers is that they make it easier to identify relationships between different pieces of information. By visually organizing data, it becomes easier to see connections and patterns that may not be immediately apparent when looking at raw data. Additionally, graphic organizers can be customized to suit specific needs, making them a flexible tool for a variety of tasks.
Overall, graphic organizers are an effective way to improve information retention and comprehension, making them a valuable tool in both personal and professional contexts. Whether you are a student, educator, or professional, incorporating graphic organizers into your workflow can help you better organize and understand complex information.
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In the following pictograph, how many books has Group 3 read?
18
25
15
12
Answers
Answer:
15 is the answer you are looking
PLEASE HELP FAST
Based on this partially filled out 1040EZ form, will this person receive a refund or owe taxes? What amount?
Answers
Based on this partially filled out 1040EZ form, this person still owe taxes because that is the purpose of the form.
What is the IRS Form 1040EZ?The IRS for Single & Joint Filers with No Dependents was the shortened version of the Internal Revenue Service Form 1040. The Form 1040EZ was for taxpayers with basic tax situations and offered a fast and easy way to file income taxes.
This form was discontinued as of the 2018 tax year and replaced with the redesigned Form 1040. It could only be used by people below age 65 with no dependents earning less than $100,000 per year, was about one-fifth as long as the full 1040 form with fewer deductions and tax credits and anyone who hasn't filed taxes for 2017 or earlier can still use the 1040EZ form for that year.
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John from sales has just sent you an e-mail. He needs a decision made on the Johnson account as soon as possible. You can make the decision, but you feel like you’d like to ask your boss for her advice. Unfortunately, she is in a business meeting, and the decision needs to be made very soon. You decide to take the initiative and ______.
a.
Interrupt your boss to make the decision
b.
Ask a coworker to make the decision
c.
Wait to make the decision
d.
Make the decision
John from sales has just sent you an e-mail. He needs a decision made on the Johnson account as soon as possible. You can make the decision, but you feel like you’d like to ask your boss for her advice. Unfortunately, she is in a business meeting, and the decision needs to be made very soon. You decide to take the initiative and ______.
a.
Interrupt your boss to make the decision
b.
Ask a coworker to make the decision
c.
Wait to make the decision
d.
Make the decision
Answers
Answer:
I believe the answer is D.
Explanation:
When you take initiative, it means you have to make a decision on your own.
The above thing regarding the decision-making was that Unfortunately when the boss was in a meeting, the decision was made me. Hence, fill in the gap - You decide to take the initiative and make a decision. This feature is known as the Decision making.
What is the meaning of Decision making?Decision-making is an important moral part of the life of any individual. Decision-making has over the years helped the living condition of human beings to get smoother and smoother.
In the case of Decision making the most important thing was to understand the fact whether the individual was talking for the oneself and the other important fact or reason is that people have been more interested in their lives and also, the motive which the yes or no depends.
Decision-making is an human perspective of the thought process regarding thee right or wrong. Hence, option D is correct.
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why do retailers offer credit?
Answers
Answer:
Iam sorry
Explanation:
I don't know the answer
21. What are employee incentive plans and what do they offer?
Answers
Employees that create more are encouraged to do so and are rewarded accordingly under the incentive plan. The phrase "Pay for Performance" describes remuneration choices such merit pay, commission, individual incentive, group incentive, and gain-sharing plans.
What exactly are employee incentive programs?A company may decide to adopt an employee incentive program to encourage staff productivity. Employee incentives are a system that recognizes and rewards effort and success in the workplace by providing employees with the chance to receive prizes or recognition.
Why do workers appreciate incentive plans?Businesses may boost productivity, lower attrition, and reduce production costs by implementing reward programs for their staff. It raises morale, motivates staff, and fosters collaboration by increasing employee involvement. The incentive programs benefited the labor as much as the businesses.
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Which of these are benefits of a job as the term is used in this lesson? (1
O a high hourly wage
O an office in a great neighborhood
O working for a good cause
O a 401(k) plan
Answers
Answer:
high Hourly wage
Explanation:
Answer:
D. a 401(k) plan
Explanation: