In previous years, Cox Transport reacquired 2 million treasury shares at $20 per share and, later, 1 million treasury shares at $26 per share. By what amount will Cox's paid-in capital-share repurchase increase if it now sells 1 million treasury shares at $29 per share and determines the cost of treasury shares by the FIFO method? (Enter answer in millions (i.e., 10,000,000 should be entered as 10).) Paid-in capital-share repurchase will increase by million
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- In previous years, Cox Transport reacquired 2 million treasury shares at $20 per share and, later, 1 million treasury shares at $26 per share. By what amount will Cox’s paid-in capital—share repurchase increase if it now sells 1 million treasury shares at $29 per share and determines cost as the weighted-average cost of treasury shares?In previous years, Cox Transport reacquired 3 million treasury shares at $25 per share and, later, 1 million treasury shares at $29 per share. If Cox now sells 2 million treasury shares at $32 per share and determines cost as the weighted-average cost of treasury shares, by what amount will Cox’s paid-in capital - share repurchase increase? (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).)The estimated pre-IPO value of equity in thecompany is about $63 million and there are 4million shares of existing shares of stock held byfamily members. The investment bank will chargea 7% spread, which is the difference between theprice the new investor pays and the proceeds tothe company. To net $18.3 million, what is thevalue of stock that must be sold? What is the totalpost-IPO value of equity? What percentage of thisequity will the new investors require? How manyshares will the new investors require? What is theestimated offer price per share?
- Brightland Inc. has a market value equal to its book value. Currently, thefirm has excess cash of $1,500, other assets of $5,800, and equity valuedat $5,000. The firm has 250 shares of stock outstanding and net income of$500. What will the new earnings per share be if the firm uses 30 percentof its excess cash to complete a stock repurchase?You have estimated that the present value of all future free cash flows of Venice Surf Co. to be $339 million. The company has nonoperating assets of $62 million and nonoperating liabilities of $271 million, and there are 8 million shares of common stock outstanding. Estimate the value of each share using the free cash flow valuation data provided. Present your answer to two decimal places, e.g., $23.45.Blasco's has a market value equal to its book value. Currently, the firm has excess cash of €1,332, other assets of €11,674, and equity of €7,200. The firm has 1200 shares outstanding and net income of €838. Blasco's has decided to spend one-third of its excess cash on a share repurchase program. How many shares will be outstanding after the share repurchase is completed? Show your steps. Jefferson Refining is issuing a rights offering wherein every shareholder will receive one right for each share of equity they own. The new shares in this offering are priced at £21 plus 3 rights. The current market value of the equity is £75 million with 3 milion shares outstanding. What is the value of one right? Show your steps. If an IPO is underpriced then the: investors in the IPO are generally unhappy with the underwriters. issue is less likely to sell out. share price will increase on the first day of trading. issuing firm is guaranteed to be…
- The Elkmont Corporation needs to raise $52.2 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $38 per share and the company’s underwriters charge a spread of 7 percent. How many shares need to be sold? Note: Do not round intermediate calculations and enter your answer in shares, not millions of shares, rounded to the nearest whole number, e.g., 1,234,567.The Meadows Corporation needs to raise $70 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. If the offer price is $30 per share and the company’s underwriters charge a spread of 8 percent, how many shares need to be sold? (Do not round intermediate calculations and enter your answer in shares, not millions, rounded to the nearest whole number, e.g., 1,234,567.)Based on the corporate valuation model, SG Telecom's total corporate value is $750 million. Its balance sheet shows $100 million notes payable, $200 million of long-term debt, $40 million of common stock, and $160 million of retained earnings, with a WACC of 10%. If the company has 24 million shares of stock outstanding, what is its price per share? Your answer should be between 5.03 and 58.72, rounded to 2 decimal places, with no special characters.
- Digital Fruit is financed solely by common stock and has outstanding 27 million shares with a market price of $10 a share. It now announces that it intends to issue $180 million of debt and to use the proceeds to buy back common stock. There are no taxes. a. What is the expected market price of the common stock after the announcement? b. How many shares can the company buy back with the $180 million of new debt that it will issue? (Enter your answer in millions rounded to 1 decimal place.) c. What is the market value of the firm (equity plus debt) after the change in capital structure? (Enter your answer in millions.) d. What is the debt ratio after the change in capital structure? (Enter your answer as a whole percent.)Taco Time Corporation is evaluating an extra dividend versus a share repurchase. In either case, $22,960 would be spent. Current earnings are $3.80 per share, and the stock currently sells for $92 per share. There are 4,100 shares outstanding. Ignore taxes and other imperfections. What will the company’s EPS and PE ratio be under the two different scenarios?The Sullivan Co. needs to raise $78 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. If the offer price is $31 per share and the company's underwriters charge a spread of 7 percent, how many shares need to be sold? In the previous problem, if the SEC filing fee and associated administrative expenses of the offering are $1,425,000, how many shares need to be sold now?
