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  • Tejano

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    Me CarlJ
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    The document contains solutions to two exercises. Exercise #4 provides answers for: the price of an item given its cost, the number of shares to issue given the offering price and proceeds, and converting a fraction to a percentage. Exercise #5 provides answers for: the number of stocks given a split ratio, calculating the offering price after an underwriting fee, and calculating the proceeds and change from an IPO given the offering price and costs.

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    Prelim Activities

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    The document contains solutions to two exercises. Exercise #4 provides answers for: the price of an item given its cost, the number of shares to issue given the offering price and proceeds, and converting a fraction to a percentage. Exercise #5 provides answers for: the number of stocks given a split ratio, calculating the offering price after an underwriting fee, and calculating the proceeds and change from an IPO given the offering price and costs.

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    6 views2 pages

    Tejano

    Uploaded by

    Me CarlJ
    The document contains solutions to two exercises. Exercise #4 provides answers for: the price of an item given its cost, the number of shares to issue given the offering price and proceeds, and converting a fraction to a percentage. Exercise #5 provides answers for: the number of stocks given a split ratio, calculating the offering price after an underwriting fee, and calculating the proceeds and change from an IPO given the offering price and costs.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    Tejano, Carl Jay F.

    Exercise #4

    1. Answer:
    Price = 2.40/0.14
    Price = 17.14

    2. Answer:
    Shares to issue = 75m / (12.50)(1-.0725)
    =75,000,000 / (12.50)(0.9275)
    =75,000,000 / 11.59375
    =6,469,003

    3. Answer:

    =5+7/12%

    =12/12%

    =100

    Exercise #5

    1. Answer:
    = 2/10
    =20 stocks

    2. Answer:

    =12.50 – 1.30

    =11.2

    =75m / 11.2

    =6,696,428 / 6,696,428.5

    3. Answer:
    =25(1-0.09) = 22.75
    =8,000,000 x 22.75 = 182,000,000
    =182,000,000 – 7,000,000
    =175,000,000

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