Initial Public Offering. A Brazilian company called Netshoes completed its IPO on April 12, 2017, and listed on the NYSE. Later, Netshoes sold 8 comma 250 comma 000 shares of stock to primary market investors at an IPO offer price of $ 17.48, with an underwriting discount of 6.1%. Secondary market investors, however, were paying only $16.07 per share for Netshoes' 31 comma 025 comma 936 shares of stock outstanding. a. Calculate the total proceeds for Netshoes' IPO. b. Calculate the dollar amount of the underwriting fee for Netshhoes' IPO. c. Calculate the net proceeds for Netshoes' IPO. d. Calculate market capitalization for Netshoes' outstanding stock. e. Calculate IPO underpricing for Netshoes' IPO. f. Explain the IPO underpricing for Netshoes.

Peninsula products has just applied for a loan at your bank. when reviewing peninsula's books for the year that just ended, you notice that the firm uses the fair value option for its bonds payable. you also see that the firm recorded a $55,000 debit in its bonds payable account and a $55,000 credit in its unrealized holding gain or loss"income account. over that same period, interest rates decreased by about 0.5 percent. how should this information affect the bank's decision as to whether to grant peninsula a loan? a : the bank should strongly consider giving a loan to peninsula because the changes in firm's bonds payable and unrealized holding gain or loss"income accounts suggest that peninsula has seen an increase in its credit rating over the past year. b : the bank should put little emphasis on the changes in peninsula's bonds payable and unrealized holding gain or loss"income accounts because these changes are likely the result of the rise in interest rates. c : the bank should hesitate before giving a loan to peninsula because the changes in firm's bonds payable and unrealized holding gain or loss"income accounts suggest that peninsula has seen a decline in its credit rating over the past year. d : the bank should put little emphasis on the changes in peninsula's bonds payable and unrealized holding gain or loss"income accounts because these changes are likely unrelated to either interest rates or the firm's credit rating.

73. calculate the weighted average cost of capital (wacc) based on the following information: the equity multiplier is 1.66; the interest rate on debt is 13%; the required return to equity holders is 22%; and the tax rate is 35%. (a) 15.6% (b) 16.0% (c) 15.0% (d) 16.6% (e) none of the above

The returns on the common stock of maynard cosmetic specialties are quite cyclical. in a boom economy, the stock is expected to return 22 percent in comparison to 9 percent in a normal economy and a negative 14 percent in a recessionary period. the probability of a recession is 35 percent while the probability of a boom is 10 percent. what is the standard deviation of the returns on this stock?