1.

Howett Pockett, Inc., plans to issue 10.3 million new shares of its stock. In discussions with its investment bank, Howett Pocket learns that the bankers recommend a net proceed of $34.40 per share and they will charge an underwriters spread of 6.0 percent of the gross proceeds. In addition, Howett Pockett must pay $3.7 million in legal and other administrative expenses for the seasoned stock offering

Calculate the total funds received by Howett Pockett from the sale of the 10.3 million shares of stock.(Enter your answer in millions of dollars rounded to 3 decimal places.)

2.

Renees Boutique, Inc., needs to raise $58.17 million to finance firm expansion. In discussions with its investment bank, Renees learns that the bankers recommend a debt issue with an offer price of $1,000 per bond and they will charge an underwriters spread of 8.5 percent of the gross price.

Calculate the net proceeds to Renees from the sale of the debt. (Enter your answer in millions of dollars and round to 2 decimal places.)

Net proceeds to Renees

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