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    sdjohnson1's Avatar
    sdjohnson1 Posts: 1, Reputation: 1
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    #1

    Jun 26, 2008, 10:46 AM
    How do I comput the proceeds
    The Presley Corporation is about to go public. It currently has aftertax earnings of $7,500,000, and 2,500,000 shares are owned by the present stockholders (the Presley family). The new public issue will represent 600,000 new shares. The new shares will be priced to the public at $20 per share, with a 5 percent spread on the offering price. There will also be $200,000 in out-of-picket costs to the corporation.

    a. Compute the net proceeds to the Presley Corporation
    Criado's Avatar
    Criado Posts: 142, Reputation: 15
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    #2

    Jun 28, 2008, 11:05 AM
    Net Proceed = 2,500,000 shares x $20 x 0.95 - $200,000
    Net Proceed = $47,300,000
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #3

    Jul 2, 2008, 12:55 PM
    This is homework, obviously by the (a). Real life doesn't come listed with lettered instructions.

    Please read our guidelines for posting homework problems:
    https://www.askmehelpdesk.com/financ...-b-u-font.html

    Criado, you should read it to. We aren't here just to answer people's homework for them. Most students, most of the time, do not learn just from seeing an answer, not to mention that they should show an attempt at doing their own work first.
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