elexa and derrick, please help on this maths question T.T
In 2003 Buffalo Wild Wings restaurant planned to make a common stock offering to raise capital to fund expansion of its popular chain of 220 restaurants that sell buffalo-style chicken wings, burgers, and salads. The company's financial were looking good. Revenue in the first 9 months of 2003 was $89.3 million compared to $61.7 million for the same period in 2002, and net income was $1.1million compared to $841000 for the same period in 2002. They planned to offer 2.7 million shares and hope to sell them at prices ranging from $14 to $16 a share. At the time of the offering, there was considerable discussion about what the share price would end up averaging and how many of the 2.7million shares would be bought. Over the preceding 10 years the share prices of 2 restaurants, PF Chang's China Bistro and Krispy Kreme Doughnuts,had risen more than 700% since their initial public offerings ; however,73 other restaurant stocks now sell at an average of 20% less than the starting price. So,the management team at Buffalo Wild Wings had to consider a variety of different income scenarios.
1. If Buffalo Wild Wings, Inc. sells all 2.7million shares at $15 a share, how much money will the sale generate? Compare the results if it sold the stock at $14 per share and at $16 per share.
2. (skip)
3. Considering the 10-year history of the restaurant's initial public offerings, the financial management team at Buffalo Wild Wings probably also planned on a worst case scenario. What if only the half of the shares sell at $12 per share? How much less income will the company receive compared with the best case scenario at $16 per share for all of the 2.7 million shares?
I need to present question number 1. so please help me to think how to present it in power point slide show T.T
question 3 my group is not so sure bout the answer. so please help~
Sunday, April 18, 2010
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