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

Blue TJ’s has a market value equal to its book value. Currently, the firm has excess cash of $389,000, other assets of $911,674, and equity of $886,200. The firm has 60,000 shares of stock outstanding and net income of $984,800. Management has decided to spend 20 percent of the firm’s excess cash on a share repurchase program.   How many shares of stock will be outstanding after the stock repurchase is completed?

The Presley Corporation is about to go public. It currently has aftertax earnings of $7,700,000, and 2,200,000 shares are owned by the present stockholders (the Presley family). The new public issue will represent 500,000 new shares. The new shares will be priced to the public at $25 per share, with a 5 percent spread on the offering price. There will also be $260,000 in out-of-pocket costs to the corporation.   a. Compute the net proceeds to the Presley Corporation. (Do not round intermediate calculations and round your answer to the nearest whole dollar.)    b. Compute the earnings per share immediately before the stock issue. (Do not round intermediate calculations and round your answer to 2 decimal places.)      c. Compute the earnings per share immediately after the stock issue. (Do not round intermediate calculations and round your answer to 2 decimal places.)      d. Determine what rate of return must be earned on the net proceeds to the corporation so there will not be a…

last question need to be solved