A firm’s balance sheet shows the sources of finance (debt and equity) and how they have been used to acquire assets. If a firm has assets equal to €6.4 million and a debt ratio of 60%, how much debt does it have on its books?
Thermax Inc. has 10 million shares outstanding. The firm is planning to issue an additional 1 million shares. After selling these shares at its $15 per share offering price and netting 97% of sale proceeds, the firm is obligated to sell an additional 100,000 shares at 80% of the offering price. In total, how much will the firm net from these stock sales?