Sassy, Inc. needs $115 million to build a new distribution center. If it issues common stock to raise the funds, the issuance costs will be 8 percent of the total amount issued. If Sassy can issue stock at $40 per share, how many shares of common stock must be issued so that it has $115 million after flotation costs to use to fund the construction of the distribution center

Answers

Answer 1

Answer: 3,125,000 shares.

Explanation:

The number of shares of common stock that must be issued will be calculated as follows:

Let the amount to be raised be represented by x. Therefore,

x - (8% × x) = $115 million

x - (0.08 × x) = $115 million

x - 0.08x = $115 million

0.92x = $115 million

x = $115 million/0.92

x = $125 million

Then the number of shares that'll be issued will be:

= Amount raised / Issue price of stock.

= $125 million / 40

= 3,125,000 shares.


Related Questions

A machine is under consideration that would cost $28,600, save $6,400 per year in cash operating costs, and have an expected life of 13 years with zero salvage value. The simple rate of return is approximately: (Round your answer to 2 decimal places.)

Answers

Answer:

22.38%

Explanation:

Around the world oil is priced consistently in United States dollars. In economic terms this is an example of:

Answers

Answer: unit of account

Explanation:

The unit of account is function of money which refers to the standard monetary unit of measurement of a good or service.

Since oil is priced consistently in United States dollars around the world, this means that dollars is the standard monetary unit of measurement and is therefore, the unit of account.

what is isomers give examples​

Answers

Answer:

In chemistry, isomers are molecules or polyatomic ions with identical molecular formulas — that is, same number of atoms of each element — but distinct arrangements of atoms in space. Isomerism is existence or possibility of isomers. Isomers do not necessarily share similar chemical or physical properties.

Explanation:

I don't know

Name two of the organizations that are involved in standards or installation requirements for home automation systems:

Answers

Answer:

American National Standards Institute

Institute of Electrical and Electronics Engineers

Explanation:

The American National Standards Institute oversees the standardization of products, systems, and services in the United States as well as the harmonization of these standards with those obtainable in other countries. They also accredit the standards developed by other standards organizations.

The Institute of Electrical and Electronics Engineers makes educational contributions to the advancement and development of standards and installation systems. It is a merger of the American Institute of Electrical Engineers and the Institute of Radio Engineers.

A company purchased a weaving machine for $198,250. The machine has a useful life of 8 years and a residual value of $10,500. It is estimated that the machine could produce 751,000 bolts of woven fabric over its useful life. In the first year, 105,500 bolts were produced. In the second year, production increased to 109,500 units. Using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year

Answers

Answer:

the depreciation expense that should be recorded for the second year is $27,375

Explanation:

The computation of the amount of depreciation expense that should be recorded for the second year is shown below

Depreciation rate is      

= ($198,250 - $10,500) ÷ 751000    

= 0.25 per bolt    

Now Depreciation expense for the second year  

= $109,500 × .25    

= $27,375

hence, the depreciation expense that should be recorded for the second year is $27,375

Culver Company has budgeted the following unit sales: 2022 2023 Quarter Units Quarter Units 1 108,000 1 94,000 2 63,000 3 73,000 4 118,000 The finished goods inventory on hand on December 31, 2021 was 21,600 units. It is the company's policy to maintain a finished goods inventory at the end of each quarter equal to 20% of the next quarter's anticipated sales. Prepare a production budget for 2022.

Answers

Answer:

Culver Company

Production Budget for 2022:

                                Quarter 1     Quarter 2   Quarter 3  Quarter 4    Total

Unit sales                   108,000      63,000        73,000     118,000    362,000

Ending inventory        12,600        14,600        23,600      18,800        18,800

Total units available 120,600       77,600        96,600    136,800    380,800

Beginning inventory   21,600       12,600         14,600     23,600       21,600

Production units        99,000      65,000        82,000     113,200    359,200

Explanation:

a) Data and Calculations:

 2022                   2023

Quarter Units    Quarter Units

1 108,000             1 94,000

2 63,000

3 73,000

4 118,000

                            Quarter 1     Quarter 2   Quarter 3  Quarter 4   Quarter 1

Unit sales                 108,000    63,000        73,000     118,000       94,000

Beginning inventory 21,600      12,600        14,600      23,600        18,800

Ending inventory      12,600      14,600        23,600      18,800

Production Budget for 2022:

                                Quarter 1     Quarter 2   Quarter 3  Quarter 4    Total

Unit sales                   108,000      63,000        73,000     118,000    362,000

Ending inventory        12,600        14,600        23,600      18,800        18,800

Total units available 120,600       77,600        96,600    136,800    380,800

Beginning inventory   21,600       12,600         14,600     23,600       21,600

Production units        99,000      65,000        82,000     113,200    359,200

Duerr company makes a $67,000, 90-day, 10% cash loan to Ryan Co. The maturity value of the loan is: (Use 360 days a year.)

Answers

Answer:

the maturity value of the loan is $68,675

Explanation:

The maturity value of the loan is shown below:

= Loan amount + interest charged

= $67,000 + ($67,000 × 10% × 90 days ÷ 360 days)

= $67,000 + $1,675

= $68,675

hence, the maturity value of the loan is $68,675

Broker Bill has the exclusive listing for Terri’s home. Bill brought Terri an offer from Alexis, which Terri accepted. In order to expedite the transaction, Bill offered to handle the escrow if both Terri and Alexis agreed. Which statement is true?

Answers

Answer: Bill's offer is ethical and legal and he can accept compensation for handling the escrow.

Explanation:

An exclusive listing refers to the type of real estate listing agreement whereby a broker is chosen as the sole agent of the seller. It should be noted that the right to retain the property is held by the seller rand has no obligation to the broker.

Based on the information given, it can be infered that Bill's offer is ethical and legal and he can accept compensation for handling the escrow.

Wii Brothers, a game manufacturer, has a new idea for an adventure game. It can market the game either as a traditional board game or as an interactive DVD, but not both. Consider the following cash flows of the two mutually exclusive projects for the company. Assume the discount rate is 12 percent.

Year Board Game DVD
0 -$1,200 -$2,700
1 690 1,750
2 950 1,570
3 210 800

Required:
a. What is the payback period for each project?
b. What is the NPV for each project?
c. What is the IRR for each project?
d. What is the incremental IRR?

Answers

Answer:

a. Payback period:

Board game:

= Year before payback + Amount left / Cashflow in year of payback

= 1 + (1,200 - 690) / 950

= 1.54 years

Game DVD:

= 1 + (2,700 - 1,750) / 1,570

= 1.61 years

b. NPV

Board Game

= 690 / 1.12 + 950 / 1.12² + 210 / 1.12³ - 1,200

= $322.88

Game DVD

= 1,750 / 1.12 + 1,570 / 1.12² + 800 / 1.12³ - 2,700

= $683.52

c. IRR

Look at attached picture

Board Game IRR = 29%

Game DVD IRR = 28%

d. Incremental IRR

Look at attached picture

= 27%

McCoy Brothers manufactures and sells two products, A and Z in the ratio of 5:2. Product A sells for $75; Z sells for $95. Variable costs for product A are $35; for Z $40. Fixed costs are $418,500. Compute the break-even point in composite units.

Answers

Answer:

1,350 units

Explanation:

The computation of the break-even point in composite units is shown below;

Composition contribution margin per unit is

= ($75 - $35) × 5  + ($95 - $40) × 2

= 310

Now break-even point in composite units is

= Fixed cost ÷ Composition contribution margin per unit

= $418,500 ÷ 310

= 1,350 units

Imagine that you work for a life insurance company. You are setting premiums for insurance based on life expectancy. Assuming you charge a higher premium for people expected to have shorter lives, you know that ________ will generally pay more for life insurance than ________.

Answers

Answer:

magine that you work for a life insurance company. You are setting premiums for insurance based on life expectancy. Assuming you charge a higher premium for people expected to have shorter lives, you know that ____older people____ will generally pay more for life insurance than ___younger people_____.

Explanation:

Setting life insurance premiums take into consideration the age of the insured (insurance policyholder).  Other factors considered in setting premiums are gender, medical history, hobby, and career.  Insurance premiums are periodic payments which the insured is expected to make to the insurance company (insurer) to cover the cost of the financial service being rendered and contribute to the defined benefits that will be paid upon expiration or in the event of the risk occurring.

A manufacturing company's finished goods inventory on January 1 was $68,000; cost of goods manufactured for the year was $147,000; and the December 31 finished goods inventory was $77,000. What is the cost of goods sold for the year

Answers

Answer:

$138,000

Explanation:

Particulars                                                              Amount

Finished goods inventory, January 1                   $68,000

Add: Cost of goods manufactured                      $147,000

Total                                                                       $215,000

Less: Finished goods inventory, December 31   $77,000

Cost of goods sold                                                $138,000

MC Qu. 111 A company has an overhead application... A company has an overhead application rate of 124% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $23,000

Answers

Answer:

$28,520

Explanation:

Calculation to determine How much overhead would be allocated to a job if it required total labor costing $23,000

Using this formula

Overhead=Total Labor Cost x Overhead Application Rate

Let plug in the formula

Overhead=$23,000 x 1.24

Overhead= $28,520

Therefore How much overhead would be allocated to a job if it required total labor costing $23,000 will be $28,520

During the year, Wright Company sells 500 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 40 $ 68 $ 2,720 May. 5 Purchase 270 71 19,170 Nov. 3 Purchase 220 76 16,720 530 $ 38,610 Calculate ending inventory and cost of goods sold for the year, assuming the company uses specific identification. Actual sales by the company include its entire beginning inventory, 250 units of inventory from the May 5 purchase, and 210 units from the November 3 purchase.

Answers

Answer:

Wright Company

Cost of goods sold = $36,430

Ending inventory = $2,180

Explanation:

a) Data and Calculations:

Date   Transaction            Number of Units    Unit Cost     Total Cost

Jan. 1   Beginning inventory           40                   $ 68          $ 2,720

May. 5 Purchase                          270                        71             19,170

Nov. 3 Purchase                          220                       76            16,720

Total available for sale               530                                     $ 38,610

Specific identification of Sales of 500 units:

Cost of goods sold:

Jan. 1   Beginning inventory           40                   $ 68          $ 2,720

May. 5 Purchase                          250                       71             17,750

Nov. 3 Purchase                           210                       76            15,960

Total                                             500                                    $36,430

Cost of goods sold = $36,430

Ending inventory:

May. 5 Purchase                          20                       71         $1,420

Nov. 3 Purchase                           10                       76             760

Total                                             30                                   $2,180

Ending inventory = $2,180

Portfolio Expected Return An investor puts 32% of their money in Stock 1 with a 10.15% expected return, 27% of their money in Stock 2 with a 10.95% expected return and the rest in Stock 3 with an expected return of 13.55%. What is the portfolio's expected return

Answers

Answer:

the expected return of the portfolio is 11.76%

Explanation:

The computation of the expected return of the portfolio is shown below:

= Respective return × Respective weights

= 0.32 × 10.15 +  0.27 × 10.95 + 0.41 × 13.55

= 3.248% + 2.9565% + 5.5555%

= 11.76%

Hence, the expected return of the portfolio is 11.76%

The same should be considered and relevant

The balance sheets of Davidson Corporation reported net fixed assets of $340,000 at the end of 2016. The fixed-asset turnover ratio for 2016 was 3.0, and sales for the year totaled $1,440,000. Net fixed assets at the end of 2015 were:_________
a) $760,000.
b) $480,000.
c) $620,000.
d) None of these answer choices are correct.

Answers

Answer:

$620,000

Explanation:

Calculation to determine what Net fixed assets at the end of 2015 were:

$1,440,000 / Average fixed assets

$1,440,000 / $480,000=3.0

Net fixed assets =[(340,000 + x) / 2] = $480,000

Solve for x

Net fixed assets= $620,000

Therefore Net fixed assets at the end of 2015 were:$620,000

In your opinion, how important is it for organizations to enforce internal discipline (e.g., employee termination) in preventing occupational fraud in the workplace

Answers

Answer:

There must be well-structured policies and procedures in every organization that are compatible with government laws and that regulate a company's activities and operations.

Compliance with the internal regulations must be implemented and incorporated by all employees, regardless of hierarchical level.

Therefore, when there is any type of non-compliance with organizational standards, such as occupational fraud, this must be corrected in accordance with the provisions of the regulation.

The prevention of fraudulent practices in a company must be carried out through the propagation of ethical behavior that contributes to the formation of an organizational culture aimed at personal development, collaboration and integration of employees.

Purple Lemon Fruit Company has two divisions: one is very risky, and the other exhibits significantly less risk. The company uses its investors’ overall required rate of return to evaluate its investment projects. It is most likely that the firm will become:

Answers

Answer: b. Riskier over time, and its value will decrease

Explanation:

Because the company is using the investor's required rate of return instead of one that takes into account the riskiness of the two division, you find that risk is not being adequately accounted for.

This would lead to a situation where the company becomes riskier because it is not accounting for its risk properly. With higher risk, the company will be unable to seek funding easily which would lead to lower investments being undertaken and an overall decrease in company value.

In its recent income statement, Smith Software Inc. reported paying $12 million in dividends to common shareholders, and in its year-end balance sheet, Smith reported $386 million of retained earnings. The previous year, its balance sheet showed $372 million of retained earnings. What was the firm's net income during the most recent year

Answers

Answer:

$26 million

Explanation:

Given the above information, net income

= Ending retained earnings - Beginning retained earnings + Dividend paid to shareholders

Ending retained earning = $386 million

Beginning retained earning = $372 million

Dividend paid to shareholders = $12 million

Then,

Net income earnings = $386 million - $372 million + $12 million

Net income earnings = $26 million

Therefore, the firm's net income during its most recent year is $26 million

Oxford Company uses a job order costing system. In the last month, the system accumulated labor time tickets total $24,600 for direct labor and $4,300 for indirect labor. How are these costs recorded

Answers

Answer:

Debit : Work in Process - Direct Labor  $24,600

Debit : Work in Process - Indirect Labor $4,300

Credit : Salaries and Wages Payable $28,900

Explanation:

The Journal entry accumulated costs in work in process as shown above.

What type of business would publish a new product marketing promotion in the local newspaper, online, and in stores

Answers

Answer: c. business-to-consumer

Explanation:

A company that is trying to sell to consumers directly would be trying to market its goods to those same consumers. To do so they would use various media such as local newspapers, online and in store marketing because this is where they know that they would find consumers.

The business in this scenario is doing this so it must be a business to consumer type company. Companies targeting other businesses would not advertise like this but through official channels with other companies directly.

Assume the following information for a merchandising company: Net operating income $ 19,000 Variable selling expenses $ 25,000 Cost of goods sold $ 295,000 Fixed administrative expenses $ 50,000 Fixed selling expenses $ 40,000 Variable administrative expenses $ 5,000 What are the company's sales

Answers

Answer:

$434,000

Explanation:

The net Operating income is $19,000

Variable selling expenses is $25,000

Cost of goods sold is $295,000

Fixed administrative expenses are $50,000

Fixed selling expenses is $40,000

Variable administrative expenses is $5000

The company sales can be calculated as follows

= 19,000+25,000+40,000+5000+50,000+295,000

= $434,000

The Adept Co. is analyzing a proposed project. The company expects to sell 3,500 units, give or take 10 percent. The expected variable cost per unit is $7 and the expected fixed costs are $12,500. Cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $6,000. The sale price is estimated at $15 a unit, give or take 2 percent. The company bases their sensitivity analysis on the expected case scenario. What is the sales revenue under the optimistic case scenario?
a. $54,880.
b. $50,000.
c. $58,905.
d. $53,120.
e. $54,000.

Answers

Answer:

c. $58,905.

Explanation:

The computation of the sales revenue is shown below:

optimistic scenario revenue = optimistic unit sold × optimistic price

where,

optimistic unit sold = 3500 × 110%

= $3,850  

optimistic price  = 15 × 102%

= 15.3  

So, the Optimistic revenue is

= 3850 × 15.3

= $58,905  

Hence, the option c is correct

Hatch has a standard of 2.2 hours of labor per unit, at $10.70 per hour. In producing 1,640 units, Hatch used 3,900 hours of labor at a total cost of $40,400. What is Hatch's total labor variance

Answers

Answer: $1,794.40 Unfavorable

Explanation:

Total labor variance = Actual cost of labor - Standard cost of labor

Actual cost of labor = $40,400

Standard cost of labor = Hours per unit * Cost per hour * Number of units

= 2.2 * 10.70 * 1,640

= $38,605.60

Total labor variance = 40,400 - 38,605.60

= $1,794.40 Unfavorable

Unfavorable because actual cost of labor was greater than the standard cost.

Chik Chik Company showed the following balances at the end of its first year: Cash $ 3,000 Prepaid insurance 4,700 Accounts receivable 3,500 Accounts payable 2,800 Notes payable 4,200 Common stock 1,400 Dividends 700 Revenues 22,000 Expenses 17,500 What did Chik Chik Company show as total credits on its trial balance

Answers

Answer: $30,400

Explanation:

Accounts with credit balances are revenue, liabilities and stock or equity.

The credit balances above are:

Accounts payable, Notes payable, common stock, revenues,

= 2,800 + 4,200 + 1,400 + 22,000

= $30,400

he building is subject to a mortgage of $10,000, which the partnership has assumed. The partnership agreement also specifies that profits and losses are to be distributed evenly without a true up payment. What amounts shoul

Answers

Answer:

I. $35,000; II. $75,000

Explanation:

Calculation to determine What amounts should be recorded as capital for Roberts and Smith at the formation of the partnership

ROBERTS net assets contributed= ($20,000 + $15,000)

Roberts net assets contributed=$35,000

SMITH fair market value of the net assets contributed = ($30,000 + $15,000 + $40,000 - $10,000)

Smith fair market value of the net assets contributed=$75,000

Therefore the amount tha should be recorded as capital for Roberts and Smith at the formation of the partnership is $35,000;$75,000

A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the current year, management estimated that $22,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $445. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense

Answers

Answer:

The appropriate answer is "$22,305".

Explanation:

The given values are:

Estimated uncollectible,

= $22,750

Credit balance in allowance,

= $445

Now,

The bad debt expense will be:

= [tex]Estimated \ uncollectible-Credit \ balance \ in \ allowance[/tex]

By substituting the values, we get

= [tex]22750-445[/tex]

= [tex]22305[/tex] ($)

Following is information from Skechers USA, Inc. for fiscal 2016 (in thousands).
Total 2016 revenue $3,563,311
Total revenue growth rate 5.0%
Terminal revenue growth rate 2%
Net operating profit margin (NOPM) 8.2%
Net operating asset turnover (NOAT)3.42
Projected 2017 total revenue would be:
A. $3,634,577 thousand.
B. $3,855,503 thousand.
C. $3,324,568 thousand.
D. $3,741,477 thousand.
E. None of the above.

Answers

Answer:

D. $3,741,477 thousand

Explanation:

Calculation to determine what total revenue would be:

Total value=$3,563,311 million ×(1+.05)

Total value=$3,563,311 million × 1.05

Total value = $3,741,477 thousand

Therefore total revenue would be:$3,741,477 thousand

An important issue when developing a new service or changing an existing one is the question of how different the new service is compared to the current services offered by the firm. Which of the following is not a general factor to consider when determining this?a. Similarity to current servicesb. Similarity of expected customers to current customersc. Similarity to current processesd. Financial justification

Answers

Answer:

Option b: Similarity of expected customers to current customers

Explanation:

Designing Service Products

This is an essential requirements when developing a new service or changing an existing one. There is this view or notion of how different the new service is compared to the current services offered by the firm. There are three general factors to consider when determining this. It includes:

1. Similarity to current service

2. Current process

3. Financial justification

Characteristics of Product Design Process

It includes:

1. The companies often bring new products to market

2. There is an integral to success

3. It differs significantly depending on the industry etc.

The Major factors in design strategy includes;

1. Cost

2. Quality

3. Time to market

4. Customer satisfaction

5. Competitive advantage

f the wage rate is $20 per unit and if the firm uses two units of capital in the short run with rental rate of $200 per unit then what is the average total cost for the 30th unit of production created

Answers

Answer:

The average total cost for the 30th unit of production created is:

= $420.

Explanation:

a) Data and Calculations:

Wage rate per unit = $20

Capital rental rate per unit of capital = $200

Units of capital per unit = 2

Capital rental rate per unit of product = $400 ($200 * 2)

Total cost for each unit of production = $420 ($400 + $20)

b) More capital is consumed by the production of this product.  The production is capital-intensive while labor is very cheap.  To product a unit, the company will incur $20 in labor and $400 in capital.  The total unit cost is $420 (cost of labor and capital per unit)

The average total cost for the 30th unit of production created is $420

What is average total cost?

Average Total Cost refers to the combination of all fixed and variable costs per unit in producing a product.

Given the above information, the

Total cost for each unit of production

= $420 ($400 + $20)

The above means that more capital is consumed by the production of this product. Also, the production is capital-intensive while labor is very cheap.  

To produce a unit, the company will incur $20 in labor and $400 in capital.  The total unit cost is $420 (cost of labor and capital per unit)

Hence, the average total cost for the 30th unit of production created is $420

Learn more about average total cost here : https://brainly.com/question/25109150

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