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?
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- An investment bank pays $42.80 per share for 5.3 million shares of GM Company in a firm commitment stock offering. It then can sell those shares to the public for $52 per share.How much money does GM receive?Elias Corporation shared the following prospective financial information to a group of private equity investors. You were tasked to compute for the approximate price that should be set if the investor buys out 20% share in Elias Company. 2021 2,250,000 562,500 750,000 937,500 450,000 200,000 287,500 2022 2,750,000 687,500 750,000 1,312,500 550,000 200,000 562,500 2023 3,250,000 812,500 750,000 1,687,500 650,000 200,000 837,500 2025 3,500,000 4,000,000 875,000 1,000,000 750,000 2024 Revenues Variable Cost of Goods Sold Fixed Cost of Goods Sold Gross Profit Variable Operating Expenses Fixed Operating Expenses Operating Income 750,000 1,875,000 2,250,000 800,000 700,000 200,000 200,000 975,000 1,250,000 Other pertinent information can be found below: • Depreciation of P500,000 is included in fixed cost of goods sold while P100,000 of depreciation is charged to fixed operating expenses. • Income tax rate is 20%. • Elias Corporation estimates it will need P200,000 cash on an annual basis to…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. What is the value of one right in this scenario? O $10 approximately $8.33 O approximately $6.92 approximately $12.69 oo
- Yonkers Inc. is issuing new common shares in a rights offer to raise $10 million for a new project. The subscription price for each new share is $20. The firm currently has two million common shares outstanding, each priced at $25 in the market. What is the price of each right? Select one: a. $1 b. $2 c. $5 d. $10 e. $15Answer the following problems with a complete solution. a. Find the 5% commission on the total sales of P20,000.00 b. You bought 20 shares at P750.00 per share. The broker charged her a P150.00 commission. Find the cost of the stock.c. You own 105 shares, par value P200.00. If the corporation declares an 8% dividend, what is the total dividend that should get? d. You bought ten P750.00 bonds at 315 plus a 6% brokerage fee. Find the investment.& 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 shares
- 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. What is the value of one right in this scenario? $10 approximately $8.33 approximately $6.92 approximately $12.69Suppose you own 500,000 shares of common stock in a firm with 40 million total shares outstanding. The firm announces a plan to sell an additional 5 million shares through a rights offering. The market value of the stock is $32.5 before the rights offering and the new shares are being offered to existing shareholders at a $2.50 discount. If you exercise your preemptive rights, how many of the new shares can you purchase? a. 100,000 shares b. 50,000 shares c. 62,500 shares d. 32,500 shares e. 45,000 sharesA 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 rights will be required to purchase 30 shares? 300 rights 10 rights 30 rights O 100 rights
- Suppose IWT has decided to distribute $50 million, which it presently is holding in liquid short-term investments. IWT’s value of operations is estimated to be about $1,937.5 million; it has $387.5 million in debt and zero preferred stock. As mentioned previously, IWT has 100 million shares of stock outstanding. Assume that IWT has not yet made the distribution. What is IWT’s intrinsic value of equity? What is its intrinsic stock price per share? Now suppose that IWT has just made the $50 million distribution in the form of dividends. What is IWT’s intrinsic value of equity? What is its intrinsic stock price per share? Suppose instead that IWT has just made the $50 million distribution in the form of a stock repurchase. Now what is IWT’s intrinsic value of equity? How many shares did IWT repurchase? How many shares remained outstanding after the repurchase? What is its intrinsic stock price per share after the repurchase?Suppose you own 32,000 shares of common stock in a firm with 1.6 million total shares outstanding. The firm announces a plan to sell an additional 0.8 million shares through a rights offering. The market value of the stock is $32 before the rights offering and the new shares are being offered to existing shareholders at a $2 discount. a. If you exercise your preemptive rights, how many of the new shares can you purchase?b. What is the market value of the stock after the rights offering? (Enter your answer in millions rounded to 1 decimal place. (e.g., 32.1))c-1. What is your total investment in the firm after the rights offering? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. (e.g., 32.16))c-2. If you exercise your preemptive right how many original shares and how many new shares do you have?d-1. If you decide not to exercise your preemptive rights, what is your investment in the firm after the rights offering? (Do not round…Your corporation is evaluating declaring a cash dividend or declaring a share repurchase. In either case your corporation only has $10,000 to spend. Your corporation has 700 shares of stock outstanding that is currently selling for $55.00 per share. Please show your calculations in the space provided.What would be the amount of cash dividend per share if your corporation declares a cash dividend?
