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 in a follow-on offering at a price of $ 18.02, with an underwriting discount of 6.8%. Secondary market investors, however, were paying only $16.32 per share for Netshoes' 31 comma 025 comma 936 shares of stock outstanding. a. Calculate the total proceeds for Netshoes' follow-on offering. b. Calculate the dollar amount of the underwriting fee for Netshhoes' second offering. c. Calculate the net proceeds for Netshoes' second offering. d. Calculate market capitalization for Netshoes' outstanding stock prior to the follow-on issue. e. Calculate IPO underpricing for Netshoes' follow-on

Guardian inc. is trying to develop an asset-financing plan. the firm has $450,000 in temporary current assets and $350,000 in permanent current assets. guardian also has $550,000 in fixed assets. assume a tax rate of 40 percent. a. construct two alternative financing plans for guardian. one of the plans should be conservative, with 70 percent of assets financed by long-term sources, and the other should be aggressive, with only 56.25 percent of assets financed by long-term sources. the current interest rate is 12 percent on long-term funds and 7 percent on short-term financing. compute the annual interest payments under each plan.

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?

Every 10 years, the federal government sponsors a national survey of health and health practices (nhanes). one question in the survey asks participants to rate their overall health using a 5-point rating scale. what is the scale of measurement used for this question? ratio ordinal interval nominal