by Brian Leakey | Mar 28, 2023 | finance
Penelope’s Flower Shop, Inc., is looking to raise $25 million to finance firm expansion. When discussing the matter with its investment bank, the firm finds out that the bankers recommend a gross proceeds price of $35 per share, and that they’ll charge an...
by Brian Leakey | Mar 27, 2023 | finance
Venture capital (S14.1) Ethelbert.com is a young software company owned by two entrepreneurs. It currently needs to raise $400,000 to support its expansion plans. A venture capitalist is prepared to provide the cash in return for a 40% holding in the company. Under...
by Brian Leakey | Mar 27, 2023 | finance
Underpricing (SI4.2) Having heard about IPO underpricing, I put in an order to my broker for 1.000 shares of every IPO he can get for me. After three months, my investment record is as follows:IPO, Shares Allocated to me, Price per Share, Return InitialA, 500, $10,...
by Brian Leakey | Mar 26, 2023 | finance
Solve/answer case application questions 1-10. Use Balance Sheet & Pro Forma Cash Flow Template for Questions 1 and 5.QSEN Individual Essay: Patient Story Interview Identify a friend, family member or acquaintance and conduct a short interview about an experience...
by Brian Leakey | Mar 25, 2023 | finance
People should understand the impact of different types of risk on financial health, whether they’re dealing with personal or corporate finances. The risks for personal finance often only affect individuals and families. These risks come up, for example, when deciding...
by Brian Leakey | Mar 25, 2023 | finance
Midwest Water Works estimates that its WACC is 10.5%. The company is considering the following capital budgeting projects:Project Size Rate of ReturnA $1 million 12.0%B 2 million 11.5C 2 million 11.2D 2 million 11.0E 1 million 10.7F 1 million 10.3G 1 million...
