Goldman Sachs is underwriting instacart's IPO, They have estimated the market is willing to purchase 322 million shares of instacart at a price of 68 per share Goldman offers Instacart the choice of either a firm commitment with a price of $43 and a spread of $1.10, or a best efforts with a commission of $4.77 per share. How many shares does Instacart need to sell to prefer the best efforts offering? Note Answer in millions, report two decimal places.
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Goldman Sachs is underwriting instacart's IPO, They have estimated the market is willing to purchase 322 million shares of instacart at a price of 68 per share Goldman offers Instacart the choice of either a firm commitment with a price of $43 and a spread of $1.10, or a best efforts with a commission of $4.77 per share. How many shares does Instacart need to sell to prefer the best efforts offering? Note Answer in millions, report two decimal places.
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- The Tennis Shoe Company has concluded that additional equity financing will be needed to expand operations and that the needed funds will be best obtained through a rights offering. It has correctly determined that as a result of the rights offering, the share price will fall from $56 to $54.30 ($56 is the rights-on price; $54.30 is the ex-rights price, also known as the when-issued price). The company is seeking $17.5 million in additional funds with a per-share subscription price equal to $41. How many shares are there currently, before the offering? (Assume that the increment to the market value of the equity equals the gross proceeds from the offering.) (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Zang Industries has hired the investment banking firm of Eric, Schwartz, & Mann (ESM) to help it go public. Zang and ESM agree that Zang's current value of equity is $59 million. Zang currently has 5 million shares outstanding and will issue 1.7 million new shares. ESM charges a 6% spread. a. What is the correctly valued offer price? Do not round intermediate calculations. Round your answer to the nearest cent. b. How much cash will Zang raise net of the spread (use the rounded offer price)? Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. Give typing answer with explanation and conclusionFlemington Farms is evaluating an extra dividend versus a share repurchase. In either case, $15,000 would be spent. Current earnings are $2.80 per share, and the stock currently sells for $75 per share. There are 2,800 shares outstanding. Ignore taxes and other imperfections. The PE ratio will be ____ if the firm issues the dividend as compared to ____ if the firm does the share repurchase.
- Zang Industries has hired the investment banking firm of Eric, Schwartz, & Mann (ESM) to help it go public. Zang and ESM agree that Zang's current value of equity is $55 million. Zang currently has 3 million shares outstanding and will issue 2 million new shares. ESM charges a 5% spread. What is the correctly valued offer price? Do not round intermediate calculations. Round your answer to the nearest cent.Bellex Technik AG issues an IPO sold on a best-// basis. The company's investment bank demands a spread of 17 per cent of the offer price, which is set at €30 per share. Three million shares are issued. However, the bank was overly optimistic and eventually is able to sell the shares for only €28. What are the proceeds for the issuer and the underwriter?Oxford Metal has earnings per share of $2. It has 10 million shares outstanding and is trading at $20 per share. Oxford Metal is thinking of buying Memphis Stee which has eamings per share of $1.25, 4 million shares outstanding, and a price per share of $15. Oxford Metal will pay for Memphis Steel by issuing new shares There are no expected synergies from the transaction. If Oxford pays no premium to buy Memphis Steel, then Oxfords price-eamings ratio ater the merger will be closest to: O A. 8.7 B. 7.8 OC. 10.0 O D. 10.42 OE 120
- Rearden Metal has earnings per share of $2. It has 10 million shares outstanding and is trading at $20 per share. Rearden Metal is thinking of buying Associated Steel, which has earnings per share of $1.25, 4 million shares outstanding, and a price per share of $15. Rearden Metal will pay for Associated Steel by issuing new shares. There are no expected synergies from the transaction. If Rearden pays no premium to buy Associated Steel, then Rearden's price/earnings ratio after the merger will be closest to: Answer choices A) 12 B) 10.42 C) 7.80 D) 10Consider two companies. Rearden Metal has earnings per share of €2, 10 million sharesoutstanding and its current stock price is €20. Associated Steel, has earnings per share of €1,25,4 million shares outstanding, and a stock price of €15Rearden Metal is thinking of buying Associated Steel and will pay for Associated Steel by issuingnew shares. Rearden Metal expects no synergies from the acquisitiorAssume that Rearden Metal offers an exchange ratio such that, at current pre-announcementshare prices for both firms, the offer represents a 20% premium to buy Associated Steel. a) Compute the price per share of the Rearden Metal that should be observed immediatelyafter the acquisition public announcement. b) Compute the price per share of the Associated Steel that should be observed immediatelyafter the acquisition public announcement.ABC Trading wants to raise equity to fund an acquisition of a small company (XYZ). ABC is considering two choices: (i) using an underwriting syndicate, (ii) a rights offering. The price of ABC stock is $60 and there are 250 million shares outstanding. (a) If ABC agrees to pay 3% to an underwriter to issue the stock, what are the net proceeds to the company if it sells 20 million shares to the public for $60 each?
- Rearden Metal has earnings per share of $2. It has 10 million shares outstanding and is trading at $20 per share. Rearden Metal is thinking of buying Associated Steel, which has earnings per share of $1.25, 4 million shares outstanding, and a price per share of $15. Rearden Metal will pay for Associated Steel by issuing new shares. There are no expected synergies from the transaction.If Rearden offers an exchange ratio such that, at current pre-announcement share prices for both firms, the offer represents a 20% premium to buy Associated Steel, then Rearden's earnings per share after the merger will be closest to: $1.84. $1.90. $2.00. $2.25.Rearden Metal has earnings per share of $2. It has 10 million shares outstanding and is trading at $20 per share. Rearden Metal is thinking of buying Associated Steel, which has earnings per share of $1.25, 4 million shares outstanding, and a price per share of $15. Rearden Metal will pay for Associated Steel by issuing new shares. There are no expected synergies from the transaction. If Rearden offers an exchange ratio such that, at current pre-announcement share prices for both firms, the offer represents a 20% premium to buy Associated Steel, then the price per share of the combined corporation after the merger will be closest to: Answer choices: A) $17.20 B) $26.00 C) $20.00 D) $19.12Rearden Metal has earnings per share of $2. It has 10 million shares outstanding and is trading at $20 per share. Rearden Metal is thinking of buying Associated Steel, which has earnings per share of $1.25, 4 million shares outstanding, and a price per share of $15. Rearden Metal will pay for Associated Steel by issuing new shares. There are no expected synergies from the transaction. Assume Rearden offers an exchange ratio such that, at current pre-announcement share prices for both firms, the offer represents a 20% premium to buy Associated Steel. How many new shares Rearden needs to issue to pay for this deal? What is the exchange ratio? What will be the price per share of the combined corporation after the merger? What will be the price per share of the Rearden immediately after the announcement? What will be the price per share of the Associated Steel immediately after the announcement? What is the actual premium Rearden will pay? Is this an accretive or dilutive deal? Compare…