Compute the net proceeds to northern airlines. compute the, Ask an Expert

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Northern Airlines is about to go public. It currently has aftertax earnings of $6,000,000 and 4,000,000 shares are owned by the present stockholders. The new public issue will represent 300,000 new shares. The new shares will be priced to the public at $18 per share with a 4 percent spread on the offering price. There will also be $100,000 in out-of-pocket costs to the corporation.

a. Compute the net proceeds to Northern Airlines.

b. Compute the earnings per share immediately before the stock issue.

c. Compute the earnings per share immediately after the stock issue.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M951600

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