Himmel Corp. wants to raise $100 million in a new stock issue

Himmel Corp. wants to raise $100 million in a new stock issue

Question # 00716177 Posted By: dr.tony Updated on: 02/11/2019 05:36 AM Due on: 02/11/2019
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 Exam #1 Problem:

Himmel Corp. wants to raise $100 million in a new stock issue. Its investment banker indicates that the sale of new stock will require 12 percent underpricing and a 7 percent spread. (Hint: The underpricing is 12 percent of the current stock price, and the spread is 7 percent of the issue price.)

a. Assuming Himmel's stock price does not change from its current price of $50 per share, how many shares must the company sell and at what price to the public?
b. How much money will the investment banking syndicates earn on the sale?

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  1. dr.tony
    Tutorial # 00716580 Posted By: dr.tony Posted on: 02/11/2019 05:36 AM
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