Dean Drones Ltd., based in Hong Kong, has 3 million shares outstanding. The firm is planning...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Dean Drones Ltd., based in Hong Kong, has 3 million shares outstanding. The firm is planning on issuing an additional 130,000 shares at an offer price of $5 by way of crowdfunding. They have engaged a crowdfunding company, which agreed to a commission of 5% of the amount raised. Dean Drones has also planned to sell another 24,500 shares to a venture capitalist, who will only invest if the crowdfunding is successful. However, he will pay 75% of the offer price. How much cash will Dean Drones raise from these share sales? The total cash raised by Dean Drones from these share sales is $ (Round to the nearest dollar.) Dean Drones Ltd., based in Hong Kong, has 3 million shares outstanding. The firm is planning on issuing an additional 130,000 shares at an offer price of $5 by way of crowdfunding. They have engaged a crowdfunding company, which agreed to a commission of 5% of the amount raised. Dean Drones has also planned to sell another 24,500 shares to a venture capitalist, who will only invest if the crowdfunding is successful. However, he will pay 75% of the offer price. How much cash will Dean Drones raise from these share sales? The total cash raised by Dean Drones from these share sales is $ (Round to the nearest dollar.)
Expert Answer:
Answer rating: 100% (QA)
Solution Price to Venture Capital Offer price he will pay Price to Venture ... View the full answer
Related Book For
Financial Management Principles and Applications
ISBN: 978-0134417219
13th edition
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
Posted Date:
Students also viewed these finance questions
-
The firm is planning on receiving a regulatory permission to sell its product in different regulated markets. The details are presented in Table 1. The marketing department conducted research and...
-
The firm is planning on receiving a regulatory permission to sell its product in different regulated markets. The details are presented in Table 1. The marketing department conducted research and...
-
The Kumar Corporation is planning on issuing bonds that pay no interest but can be converted into $ 1,000 at maturity, 7 years from their purchase. To price these bonds competitively with other bonds...
-
Alexa owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses in connection with her condo: Insurance $ 3,900 Mortgage interest 10,700 Property taxes 3,000 Repairs...
-
1. How much electric energy (in joules) is delivered in 5.00 min to an electric motor that draws 0.500 A from a 6.00-V battery? 2. A car has a 12.0-V battery. If the current through the starter is...
-
Member BC exerts on member AC a force P directed along line BC. Knowing that P must have a 325-N horizontal component, determine (a) The magnitude of the force P, (b) Its vertical component. 720 mm...
-
Posting a $800 purchase of supplies on account appears as which of the following? a. Supplies 800 Accounts Receivable 800 C. Supplies 800 Accounts Payable 800 b. Supplies Accounts Payable d. Cash...
-
Consider the following data for the assembly division of Cranberry Watches, Inc., The assembly division uses the weighted- average method of process costing. aDegree of completion: direct materials,...
-
Cesar's Bottlers bottles soft drinks in a factory that can operate one shift, two shifts, or three shifts per day. Each shift is eight hours long. The factory is closed on weekends. The sales price...
-
A fertilizer manufacturing company wants to relocate to Lakeside County. A report from a fired researcher at the company indicates the companys product is releasing toxic by-products. The company...
-
What is the greatest number of squares you can make by overlapping three squares of the same size? What about overlapping four squares? How will you know if your way really does have the greatest...
-
7. Use the following information to answer this question: Windswept, Incorporated 2021 Income Statement ($ in millions) Net sales $ 9,150 Cost of goods sold 7,590 Depreciation 435 Earnings before $...
-
What are the challenges and solutions involved in implementing fault tolerance and high availability features in mission-critical operating systems, such as redundancy, failover mechanisms, and...
-
Some managers argued that telework negatively influences employee performance so it should not be used after the COVID-19 pandemic?. Do you agree or disagree with the argument? (Explain why you agree...
-
How do modern operating systems handle power management and energy efficiency, including techniques such as dynamic voltage and frequency scaling (DVFS), idle task optimization, and advanced...
-
Describe the fundamental differences between monolithic and microkernel architectures. What are the trade-offs in terms of performance, maintainability, and security ?
-
The Railroad Crossing (continued) 4. The car is traveling on the highway at an initial velocity of 45 mph (20 m/s) to the East. The driver sees the RR X-ing lights flashing and steps on the brakes,...
-
Discuss the information available from the following techniques in the analysis of inorganic pigments used in antique oil paintings: (i) Powder X-ray diffraction, (ii) Infrared and Raman...
-
Sante Capital operates two mutual funds headquartered in Houston, Texas. The firm is evaluating the stock of four different firms for possible inclusion in its fund holdings. As part of their...
-
In Regardless of Your Major: Conflicting Objectives Lead to Problems in Managing a Firm's Working Capital on page 578, we learned that the objectives of a firm's sales force and the goal of...
-
What did Depression-era humorist Will Rogers mean when he said, "People tell me about the great return I'm going to get on my investment, but I'm more concerned about the return of my investment"?
-
Use Table A.2 to find the area to the right of z = 2.31. Z 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 -0.8 -0.7 .2119 .2090 .2420 2389 -0.6 .2743 .2061 .2033 2358 .2327 .2709 .2676 .2643 .2611...
-
Use any method to find the z-score with an area of 0.09 to its right.
-
If X is a continuous random variable, then P(X = a) = ___________________ for any number a. In Exercises 914, fill in each blank with the appropriate word or phrase.
Study smarter with the SolutionInn App