Mountain Teas wants to raise $14.9 million to open a new production facility. The company estimates the issue costs for legal and accounting fees will be $582,000. The underwriters have set the stock price at $27.50 a share and the underwriting spread at 8.15 percent. How many shares of stock must be sold to meet this cash need?

Related Questions

• Foyle Corp. prepared the following reconciliation between book income and taxable income for the year ended December 31, 2008: - Book income before income taxes: $1,200,000 - Add: Temporary difference for construction contract revenue expected to reverse in 2009: $160,000 - Deduct: Temporary difference for depreciation expense anticipated to reverse in equal parts over the next four years: ($640,000) - Taxable income: $720,000 Given Foyle's effective income tax rate of 34% for 2008, the current provision for income taxes in the 2008 income statement should be calculated as follows: Taxable income x Effective tax rate = Current provision for income taxes $720,000 x 34% = $244,800 Therefore, Foyle should report $244,800 as the current provision for income taxes in its 2008 income statement.
• Matt intends to start his own business after graduating from college. He aims to save $1,400 every six months for five years. Assuming his savings earn 10% annually (5% semiannually), calculate his total savings at the end of the fifth year.
• Discuss the cultural heterogeneity of South Africa.
• To ensure respect and mutual cooperation among all parties and leverage such cooperation to achieve operational goals, combatant commanders should use _____.
• The ratio of cash to monthly cash expenses can be used to:a. Determine the duration a company with negative cash flows from investing activities can operate. b. Estimate the duration a company with negative cash flows from operations can sustain operations. c. Gauge the duration a company with positive cash flows from financing activities can function. d. Assess how long a company with positive cash flows from investing activities can operate.
• Budgeted sales are: Month Sales revenue August $15,000 September $15,000 October $14,000 November $13,000 December $20,000 You collect 50% of sales revenue as cash in the month of the sale, 40% in the following month, and 10% two months after the sale. a) Compute budgeted cash inflows for October and November: October = $ November = $ Remember to go backwards in time: e.g., 40% of September revenue is collected in the following month (October). This implies that cash inflows for October include 40% of sales from the previous month (September).
• Which one of the following statements is true regarding JIT inventory? A) It exists just in case something goes wrong. B) It hides variability. C) It is the minimum inventory necessary to keep a perfect system running. D) It is minimized with by large lot of production
• Mindy has a Roth IRA held longer than 5 years, to which she has contributed $30,000. The IRA has a current value of $62,000. Mindy is 55 years old and she has a distribution of $38,000 after retiring on disability. How much of the distribution will be taxable to Mindy?
• Under which conditions would a plant manager elect to use a fixed-order quantity model as opposed to a fixed-time period model? What are the disadvantages of using a fixed-time period ordering system?
• Suppose the current spot rate for the Norwegian kroner is $1 = NKr6.6869. The expected inflation rate in Norway is 6 percent and in the U.S. it is 3.1 percent. A risk-free asset in the U.S. is yielding 4 percent. What risk-free rate of return should you expect on a Norwegian security? A.4.5 percent B.4.0 percent C. 6.9 percent D. 5.0 percent E. 3.5 percent