Persian Rugs needs $600 million to support growth next year. If it issues new common stock to raise the funds, the flotation (issuance) costs will be 4 percent. If Persian can issue stock at $125 per share, how many shares of common stock must be issued so that it has $600 million after flotation costs to use for its planned growth?
A. 5,000,000
B. 4,800,000
C. 4,992,000
D. 4,512,000
E. 4,000,000
Answer: A
You might also like to view...
The journal entry a company uses to record partially funded pension rights for its salaried employees at the end ofthe year is
a. debit Salary Expense; credit Cash b. debit Pension Expense; credit Unfunded Pension Liability c. debit Pension Expense; credit Unfunded Pension Liability and Cash d. debit Pension Expense; credit Cash
As an organization goes through the stages of the life cycle, it becomes more
A. informal. B. centralized. C. unstable. D. organic. E. bureaucratic.
All macros reside in code modules of which there are two types: _____ and _____ modules
Fill in the blank(s) with the appropriate word(s).
Terminating an employee for the use of illegal drugs is an example of a(n) ________ turnover.
A. involuntary B. absenteeism C. external D. voluntary E. retentive