Howett pockett inc plans to issue 116 million new shares of, Ask an Expert

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Howett Pockett, Inc., plans to issue 11.6 million new shares of its stock. In discussions with its investment bank, Howett Pocket learns that the bankers recommend a net proceed of $37.00 per share and they will charge an underwriter’s spread of 4.5 percent of the gross proceeds. In addition, Howett Pockett must pay $5.0 million in legal and other administrative expenses for the seasoned stock offering. Calculate the gross proceeds per share. (Round your answer to 2 decimal places.)

Gross proceeds $ 38.74per share

Calculate the total funds received by Howett Pockett from the sale of the 11.6 million shares of stock. (Enter your answer in millions of dollars rounded to 3 decimal places.)

Funds received by Howett Pockett $ __________m

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92726555

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