Purchase Solution

Finance Question for Raptor Pharmaceuticals Corporation

Not what you're looking for?

Ask Custom Question

After a banner year of rising profits and positive stock returns, the managers of Raptor Pharmaceuticals Corporation (RPC) decided to launch a seasoned equity offering to raise new equity capital RPC currently has 10 million shares outstanding and yesterday's closing market price was $75.00 per RPC share The company plans to sell 1 million newly issued shares in its seasoned offering the investment banking firm Robbum and Blindum (R&B) has agreed to underwrite the new stock issue for a 2.5 percent discount from the offering price which RPC and R&B have agreed should be $0.75 per share lower than RPC's closing price the day before the offering is sold.

A) What is likely to happen to RPC's stock price when the plan for this seasoned offering is publicly announced?

B) Assume that RPC's stock price closes at $72.75 per share the day before the seasoned offering is launched What net proceeds will RPC receive.

C) Calculate the the return earned by RPC's existing stockholders on the shares from the time of the preceding announcement of the seasoned offering through the time it was actually sold @ $72.75.

D) Calculate the total cost of the seasoned equity offering to RPC's existing shareholders as a percentage of the offering proceeds.

Purchase this Solution
Solution Summary

This solution provides assistance with the finance question regarding Raptor Pharmaceuticals Corporation.

Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Operations Management

This quiz tests a student's knowledge about Operations Management

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

View More Free Quizzes
Related BrainMass Solutions

  • Journal entries: Raptor Corporation

    26215 Accounting Problem On July 1, 2002, Raptor Corporation, a wholesaler of used robotic equipment, issued $7,500,000 of ten-year, 10% bonds at an effective interest rate of 12%, Interest on the bonds is payable semiannually on December 31 and June

  • Deductible Medical Expense Accounting

    (a publicly traded corporation) 94,500 Ralph acquired the stock in Raptor, Inc., as an investment fourteen months ago at a cost of $42,000. Ralph's AGI for 2006 is $189,000. What is Ralph's charitable contribution deduction for 2006?

  • Business Strategies - Johnson and Johnson

    ., J&J acquired Neutrogena Corporation who is well known dermatologist-recommended skin and hair care products. In 1995 J&J acquired the diagnostics unit of Eastman Kodak Company (known for their immunodiagnostics and clinical chemistry).

  • What is an MNC?

    305831 What is meant by a multinational corporation (MNC)? What is meant by a multinational corporation (MNC)?

  • Compliance Issues benchmark Topics

    Despite the difference of opinion of competing pharmaceutical companies, the results of Endo Pharmaceuticals decision to outsource has lead to favorable results for the company.

  • Charitable Contributions

    (a publicly traded corporation) 94,500 Ralph acquired the stock in Raptor, Inc., as an investment fourteen months ago at a cost of $42,000. Ralph's AGI for 2007 is $189,000. What is Ralph's charitable contribution deduction for 2007? a. $56,700.

  • Who are the investment bankers for Medtronic, Inc. and Guidant Corp.?

    About Guidant Corporation Guidant Corporation pioneers lifesaving technology, giving an opportunity for better life today to millions of cardiac and vascular patients worldwide.

  • expansion strategy

    It has been observed that socially responsive companies are easily able to raise finance from investors, lenders and banks. Most importantly, if there is a crisis, if XYZ Pharmaceuticals is socially responsive, it can recover easily from crisis.

  • Corporate finance

    318504 Corporate Finance (University Level Question) My subject is not listed. Looking for help with Corporate Finance, university level. ( 2nd year) The question is as follows: Snail corporation wants to purchase Bug corporation.

View More Related Solutions