Examlex
The Houston Corp.needs to raise money for an addition to its plant.It will issue 300,000 shares of new common stock.The new shares will be priced at $60 per share with an 8.5% spread on the offer price.Registration costs will be $150,000.Presently Houston Corp has earnings of $3 million and 750,000 shares outstanding.
A)Compute the potential dilution from this new share issue.
B)Compute the net proceeds to Houston Corp.
C)What rate of return must be earned on the net proceeds so that no dilution of earnings per share occurs?
Leasehold Interest
Leasehold interest is the right to use and occupy real estate for a stated term under a lease.
Common Law
A body of unwritten laws based on legal precedents established by the courts.
Statute
A law enacted by a legislative body in a governmental context.
Sublet
The lease of leased premises by a tenant-in-chief to another tenant for a shorter term than the original tenancy.
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