Answered: Kobe Ltd recently sold 15 million…

Kobe Ltd recently sold 15 million shares in an IPO. The offering price was Sh.25.50, and the floatation cost was `6%. How much cash did the company receive? Select one:

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Related questions

Q: Q2: The initial investment in project is $ 2550 from now with interest 11.5%, it received yearly…

A: Net Present Value(NPV) is one of the modern techniques of capital budgeting which considers the time…

Q: Decker Company sells a single product for $25. It had no beginning inventories. Operating data…

A: Gross profits is referred as the profit, which is derived by the company after the deduction of the…

Q: 11. A 8% $1,000 par-value bond with quarterly coupons maturing in nine years is to be replaced by a…

A: Here, Details of Old Bond: Par Value of Bond is $1,000 Coupon rate is 8% Compounding period is…

Q: How do the costs of doing business affect prices?

A: The cost of producing a product or service that a company sells is usually referred to as the cost.…

Q: Repeat the problem above, considering an inflation of 4.0%. How does inflation affect the results of…

A: Here, Purchase price = $25,000 Taking Discount: Discount = $2,000 No. of months = 48 months APR =…

Q: 28-29. (Average/Difficult) If the pro forna balance sheet shows that total asset increase by…

A: Total assets on the balance sheet are funded by Debt and Equity. The ratio of Debt to Equity is…

Q: The real risk-free rate of interest is 3 percent. Inflation is expected to be 4 percent this coming…

A: An expectation theory is defined as the theory, which used to attempt for predicting what the rate…

Q: E. DEFERRED ANNUITY PROBLEMS: 23. Find the present value of a deferred annuity of P760 every six…

A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: A transport company purchased a truck for $40,000. The operating cost was $3,800 per month, with…

A: Given, Operating cost = $3,800 per month Average revenues = $5,500 per month Selling price = $12,000…

Q: A couple has decided to purchase a $180000 house using a down payment of $20000. They can amortize…

A: Here,

Q: A $12,000 non-interest-bearing promissory note is discounted at 6% compounded monthly, three years…

A: Maturity amount (MV) = $12,000 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50% Period =…

Q: What is the appropriate discount rate for RiverRocks to use to evaluate the acquisition? Why? The…

A: Appropriate discount rate = 15.2%

Q: SALAMAT Bank offers you two investment plans. The first investment requires you to invest Php 12,000…

A: We need to use simple interest formula to calculate i1 Amount =Principal(1+Rate*Time)

Q: Calculate the following ratios 1. current ratio 2. Quick Liquidity Ratio 3. cash ratio,

A: As you have asked a multiple subpart question, we will answer the first three subparts for you. To…

Q: hat it the firm’s cash conversion cycle?

A: Cash Conversion Cycle: It represents the period in which a firm converts the investments in…

Q: A credit card statement shows the following activity Compute the finance charge if 1.5% is charged…

A: Credit card statement shows all the payment done by the card and their is some interest would…

Q: 76. If 60% financing is available on a certain income property at a loan constant of 11%, what…

Q: Given the net present value (NPV) of Project A is -$500,000, Project B is $200,000 and Project C is…

A: Concept. NPV is net present value. It can be defined as sum of present value of all future cash…

Q: PLEASE ANSWER ONLY QUESTIONS F AND G

A: Break even analysis and cost volume profit (CVP) analysis are important analysis tools often used in…

Q: Aluminum maker Alcoa has a beta of about 1.98, whereas Hormel Foods has a beta of 0.44. If the…

A: Answer - Cist of Capital formula - RF + (RM-RF) * Beta Given data - a. For ALcoa - Beta = 1.98…

Q: Accounts receivable turnover is 4. What is the average collection period assuming annual data are…

A: Accounts receivable is the amount, which the customer has paid later on. This is the money, which a…

Q: a. Calculate the NPV and IRR with mitigation. Enter your answer for NPV in millions. For example, an…

A: Net present value (NPV) of an alternative/project refers to the variance between the initial…

Q: Jaspreet orignally agreed to make two payments: one of $3,600 due in fourteen months and another…

A: Given, The information regarding Jaspreet, Amount = P(1+rn)nt 1st payment, P= $3600 Time=14…

Q: shares of Stock B that sell for 2. Portfolio Expected Return You own a portfolio that has $3,140…

A: Expected Return: The expected return is the minimum required rate of return which an investor…

Q: What is the firm's cost of equity?

A: Cost of Equity: It represents the cost of raising capital for the issuer from the equity investors.…

Q: n all-equity firm currently has 1,000,000 shares of stock outstanding and is considering…

A: The earning per share is important factor for shareholders and if the EPS is increasing than it is…

Q: Consider the publie project at the end of the handout on "TVM and Cost-Beneft Analysis," which we…

A: NPV is the difference between Present Value of cash Inflows and Initial Investment. NPV will be…

Q: Exclusions from gross income, except: O Interest on the price of land covered by the Presidential…

A: As per Bureau of Internal Revenue(BIR) of republic of Philippines, certain items have been specified…

Q: Write a 3 page report of the pros and cons of purchasing insurance. Include information from the…

A: Insurance is a contract in which an individual or business receives financial protection or payment…

Q: In an investment project, the initial cost of investment is $400,000. The annual revenues are…

A: Payback period: The payback period (PBP) is an investment assessment approach that determines how…

Q: Joo Won receives $480 on the first of each month. Hee Sun receives $480 on the last day of each…

A: Monthly payment (m) = $480 Monthly discount rate (r) = 0.01 (0.12 / 12) Number of payments (n) = 36…

Q: A new furniture set costs $ 2800. If you make a down payment of $ 300 and finance the rest at a rate…

A: Furniture cost = $2800 Down payment = $300 Loan amount (P) = $2800 - $300 = $2500 Monthly interest…

Q: Chris invests $19,000 at 4% simple interest for 7 year. How much is in the account at the end of the…

A: Answer - Formula for Simple Interest : A = P(1 + rt) Given: First, converting R percent to r a…

Q: What is the Call plus Bond Option strategy?

A: Call option and bond It is a financial instrument that gives its holder the right to buy the…

Q: QUESTION 12 Members of the Federal Reserve System may include: commercial banks with a national…

A: The Federal Reserve System (FRS) is the central bank of the US. It controls all the financial…

Q: Leverage relates to how much of someone else’s money a business or individual is using to finance…

A: Leverage refers to the use of borrowed money by a company to fund or to finance its growth or its…

Q: Two-year Treasury securities yield 6.7 percent, while 1-year Treasury securities yield 6.3 percent.…

A: The long-term interest rate, according to the expectations theory of the term structure, is a…

Q: 1. A man borrows P2,500 for 2 years at 8 %4%. How much and what will be the amount at the end of the…

A: When the bank deducts interest from the loan amount it is known as a discount. When the discount is…

Q: ind the amount needed to deposit into an account today that will yield a typical pension payment of…

A: Annual payment (P) = $15000 Period (n) = 28 Years Interest rate (r) = 4.9%

Q: to consider the so-called corporate social responsibilities in making inve

A: Investment decisions relate to how a business's funds areallocated among various assets for the…

Q: what will be the cost of equity of Shade plc if it is financed 40% by a 7 % bank loan and 60% by…

A: Cost of Equity: It is the cost of raising equity capital for the firm from the equity investors.…

Q: Make the following Assumptions: Tangible Asset Value = 16,200,000 Required Return on Tangile…

A: In order to value of business, we can also use of excess earnings method. Firstly, we have to…

Q: how a firm might use a commodity derivative to reduce risk in its business? please include a…

A: In the world of derivatives, options etc. commodity derivatives are an important concept.…

Q: k W has the following returns for various states of the economy: State of the Economy Probability…

A: The mean return is expected probabilistic return considering the different state of economy and…

Q: Debts of $1,800 and $3,750 are due in one year and eighteen months from now, respectively.…

A: Amount due in 18 months is $3750 Amount due in one year is $1800 Replancement payment in 9 months is…

Q: You are given the following information on two traded bonds making semi-annual coupon payments.…

A: YTM or Yield to maturity is the rate of return expected on a debt instrument considering the fact it…

Q: You want to start to save for a major purchase. You can invest ₱320 every three months for 3 years…

A: If a payment or deposit of equal amount is made at equal intervals of time, for a fixed number of…

Q: QUESTION 1 Consider the exchange rate between U.S. Dollar and New Zealand Dollar: USD/NZD. If the…

A: Nominal exchange rate is the relative price of the currencies between two countries. And real…

Q: Your company is considering purchasing an expensive plece of equipment. The manufacturer of the…

A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: ABC Construction Corporation is planning to purchase STUVW Mining Corporation which is owned by S,…

A: When two or more companies join together or one company tends to acquire the other company, it is…

Question

Kobe Ltd recently sold 15 million shares in an IPO. The
offering price was Sh.25.50, and the floatation cost was
`6%. How much cash did the company receive?
Select one:
a. Sh.382.50 million
b. Sh.359.55 million
c. Sh.351.90 million
d. Sh.405.45 million
20:26

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Senten Ltd is deciding whether to pay out R60000 in excess cash in the form of an extra dividend or a share repurchase. Current profits are R 3.00 per share and the share sells for R 30. Their abbreviated balance sheet before paying out dividend is : R. Equity 240 000 Bank/cash 60000 Debt. 60000. Other assets 240 000 Total 300 000. 300 000 Evaluate each alternative (i.e pay the dividend or repurchase the shares) by calculating3.2.1 the number of shares in issue(5)3.2.2 the dividends per share (for the first alternative i.e pay the dividends. (5)3.2.3 calculate3.2.3.1 the new share price3.2.3.2 the Earnings per share Equity
In a recent IPO, a social network company issued 4,000,000 new shares. The initial price to the public was £22.00 per share. The final first-day closing price was £52.37. If the investment bankers retained £1.45 per share as fees, what was the net proceeds to the social network firm and its market capitalisation? Select one: O a. Net proceeds: £93,800,000; Market capitalisation: £203,680,000 O b. Net proceeds: £88,000,000; Market capitalisation: £88,000,000 O c. Net proceeds: £82,200,000; Market capitalisation: £209,480,000 Od. Net proceeds: £83,200,000; Market capitalisation: £219,480,000
Angel Company would like to undertake a policy of paying out 45% of its income. Its latest net income was P1,250,000, and it had 225,000 shares outstanding. What dividend per share should Angel declare? * P2.50 P2.14 P2.38 O P2.26 O P2.63
The firm of Sun and Moon purchased a share of ABC.com common stock exactly one year ago for Rs. 45. During the past year the common stock paid an annual dividend of Rs. 2.40. The firm sold the security today for Rs. 85. What is the rate of return the firm has earned? А. 5.3% В. 194.2% С. 94.2% D. None
Yan Ltd. Has extra cash of US400,000. Its equity is currently valued at US7,000,000. The number of outstanding shares is 2,000,000. What will be the ex-dividend price if Yan Ltd. Decides to pay the entire extra cash as cash dividend? Select one: a. US$0.10 per share b. US$0.50 per share c. US$4.90 per share d. US$3.30 per share
3. (a): The stock price for Bank Muscat was OMR 100 per share one year ago. The stock is currently trading at OMR 92 per share. Shareholders just received OMR 20 as dividend. Calculate the "Return" was earned over the past year? (b): First find W, and then calculate the "Weighted average" cost of capital of a Company from the following table details: Capital Component Amount WCost Debt Preferred Stock Common Stock 40,000 5% 30,000 6% 50,000 4%
The Meryl Corporation's common stock currently is selling at $100 per share, which represents a P/E ratio of 10. If the firm has 100 shares of common stock outstanding, a return on equity of 20 percent, and a debt ratio of 60 percent, what is the return on total assets (ROA)? a. 8.0% b. 10.0% с 12.0% 16°10 do
How much is the replacement value per share of V Corporation? a) Php21.82 b) Php19.84 c) Php14.22 d) Php12.24 9. 10. Heinz Inc expects to generate earnings over the next five years of Php 50,000.00; Php 60,000.00; Php 65,000.003; Php 70,000.00; and Php 75,000.00. Using the Capitalization of Earnings Method, what is the estimated value of the firm using 10.00% required rate of return. a) Php 640,000.00 b) Php 657,378.72 c) Php 657,738.72 d) Php 604,000.00 11. Heinz Inc expects to generate earnings over the next five years of Php 50,000.003; Php 60,000.00; Php 65,000.00; Php 70,000.00; and Php 75,000.00. Using the Capitalization of Earnings Method, what is the estimated value of the firm using 8.00% required rate of return. a) Php 600,000.00 b) Php 800,000.00 c) Php 500,000.00 d) Php 700,000.00 12. Ernesto, Inc has projected average earnings every year of Php 100,000,000. Debt to Equity Ratio is 3:1 After tax cost of debt is 5% while the cost of equity is 10%. The Board of Directors of…
Q2 a. The capital structure of Z Ltd. is given below: Particulars Amount (in Rs.) Equity share Capital ( shares of Rs. 10 each) 1000000 12% Preference share capital (Share of Rs.100 each) 200000 10% term loan 500000 11% debentures of Rs.100 each) 800000 Retained Earnings 800000 The expected dividend is Rs. 2.2 per equity share and its is expected to grow at 7%. Equity shares are trading at Rs.22. Preference shares are trading at Rs.95 and are redeemable after 10 years. Debentures are selling at 96% and are redeemable after 10 years. Tax rate is 35%. Calculate the WACC using book value and market value weights. (16)
Pukri Ltd is deciding whether to pay out R90 000 in excess cash in the form of an extradividend or a share repurchase. Current profits are R2,40 per share and the share sells forR20. The abbreviated balance sheet before paying out the dividend is:Equity 240 000 Bank/cash 90 000Debt 160 000 Other Assets 310 000400 000 400 000Evaluate each alternative (i.e: pay the dividend or repurchase the shares) by:1.3 Calculate:1.3.1 The new share price
Hassel Inc.'s would like to undertake a policy of paying out 45% of its income. Hassel’s latest net income was P1,250,000, and it had 225,000 shares outstanding. What dividend per share should Hassel declare? * Choices: P2.63 P2.14 P2.38 P2.50 P2.26
Example: What is the multi-year holding period return for this share - Initial share price was £1, (P3) was £1.20 A dividend of 6p was paid at the end of Year 1 (D₁), 7p was paid at the end of Year 2 (D₂) and 8p was paid at the end of Year 3 (D3) ● Year 0 1 2 3 3 NPV Cash flow (pence) (100) 6 7 8 120 DF @ 12% DCF DF @13% DCF

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS