1 calculating costs of issuing stock paiges purses inc, Ask an Expert

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1. Calculating Costs of Issuing Stock Paige's Purses, Inc. needs to raise $26.30 million to finance plant expansion. In discussions with its investment bank, Paige's learns that the bankers recommend an offer price (or gross proceeds) of $63 per share and Paige's will receive $48.25 per share. What is the underwriter's spread per share on the issue?

A $63

B $48.25

C $0

D $14.75

2. Suppose a firm pays total dividends of $300,000 out of net income of $2.5 million. What would the firm's payout ratio be?

A .30

B 8.333

C 1.20

D .120

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92744357

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