Devine Linens (DL) must raise $14,000,000 to support future growth. If it raises the funds by issuing stock, DL must pay an investment banker 5 percent of the total amount issued plus $250,000 in other costs associated with the issue. What is the amount of stock that DL must issue to net $14,000,000 after flotation costs?

A. $14,962,500
B. $14,950,000
C. $14,737,092
D. $15,000,000
E. $13,537,500


Answer: D

Business

You might also like to view...

The lower of cost or market (LCM) rule violates the historical cost principle

a. True b. False Indicate whether the statement is true or false

Business

Strategic renewal and the pursuit of new venture opportunities are the two primary aims of corporate entrepreneurship.

Answer the following statement true (T) or false (F)

Business

Jell-O brand gelatin introduced a line of vegetable flavored gelatins, including tomato and celery. The product failed because consumers associated Jell-O gelatin with a sweet, fruit-based flavor

In this example, consumers' ________ made them unwilling to accept the new product. A) exposure B) cognition C) self-actualization needs D) personalities E) interpretation

Business

The visualization step in Monroe’s Motivated Sequence involves ______.

a. introducing a proposed solution to an existing problem b. elaborating on the need to address a particular issue c. showing the audience how a proposed solution can fix a problem d. creating awareness that a problem exists

Business