Homework Answers
The proceeds from IPO= shares issues*per share price
=(2*10^6)*6.75=13500000
Fee paid to underwriters=spread*proceeds from IPO
=9%*13500000=1215000
It is option E
Add Answer to:
An IPO is offered at $6.75 per share for 2 million shares. The IPO underwriters had...
An IPO is offered at $14 per share for 6 million shares. The IPO underwriters had...
An IPO is offered at $14 per share for 6 million shares. The IPO underwriters had a spread of 7.5%. What proceeds did the firm receive from the IPO? OA. $77.7 million B. $90.3 million O C. $6.3 million O D. $84 million OE. $75 million
Alcorn Metals just sold 1.5 million shares through an IPO offering. The shares were offered at...
Alcorn Metals just sold 1.5 million shares through an IPO offering. The shares were offered at $31.50 a share and all shares were sold. The firm received a total of $50,200,000 for this issue. What was the spread?
Felton Publishing recently completed its IPO. The stock was offered at a price of $13.31 per...
Felton Publishing recently completed its IPO. The stock was offered at a price of $13.31 per share. On the first day of trading, the stock closed at $18.41 per share. If Felton Publishing paid an underwriting spread of 6.9% for its IPO and sold 5 million shares, what was the total cost (exclusive of underpricing) to it of going public? The total cost of going public was $million. (Round to one decimal place.)
Wallace Publishing recently completed its IPO. The stock was offered at a price of $14.74 per...
Wallace Publishing recently completed its IPO. The stock was offered at a price of $14.74 per share. On the first day of trading, the stock closed at $18.71 per share. If Wallace Publishing paid an underwriting spread of 6.4% for its IPO and sold 5 million shares, what was the total cost (exclusive of underpricing) to it of going public? The total cost of going public wa on. (Round to one decimal place.)
In a recent IPO, the Sausage Co. offered 1.8 million shares of stock at an offer...
In a recent IPO, the Sausage Co. offered 1.8 million shares of stock at an offer price of $15 a share. The underwriting was conducted on a best efforts basis with a spread of 8.5 percent. The Sausage Co. received a total of $21,079,868 in sale proceeds. How many shares were sold? Group of answer choices 1,508,428 1,349,453 1,535,874 1,505,746 1,498,256
A company prices its IPO of 120 million shares through an underwritten offering at a price...
A company prices its IPO of 120 million shares through an
underwritten offering at a price to the public of $20 per share.
100 million shares are being sold by the company and 20 million
shares are being sold by selling shareholders. The underwriting
discount is 5%. The underwriters are granted an over-allotment
option covering 15% of the shares sold. The shares immediately
trade up to $25 per share in the first day of trading. Answer the
following questions:
The...
You are negotiating with your underwriters in a firm commitment offering of 12 million primary shares....
You are negotiating with your underwriters in a firm commitment offering of 12 million primary shares. You have two options: set the IPO price at $24.00 per share with a spread of 6%, or set the price at $23.20 per share with a spread of 4%. Which option raises more money for your firm? You can operatorating with over en ima firm commitm The net price to the firm of the first option is $ . (Round to the nearest...
A firm conducting an IPO of common stock sold 5 million new shares in the offering at an offer price of $20 per share. A...
A firm conducting an IPO of common stock sold 5 million new shares in the offering at an offer price of $20 per share. After the offering, the firm had 10 million shares outstanding, and the price of those shares in the secondary market was $22. The firm's IPO was underpriced by ________. A) 10% B) 90.9% C) 25% D) 15.0% E) 50%
A firm conducting an IPO of common stock sold 5 million new shares in the offering...
A firm conducting an IPO of common stock sold 5 million new shares in the offering at an offer price of $20 per share. After the offering, the firm had 10 million shares outstanding, and the price of those shares in the secondary market was $22. The total proceeds from the firm's IPO were ________. A) $300 million B) $50 million C) $110 million D) $440 million E) $100 million
ABC Ltd issues a $18 million IPO providing proceeds to ABC of $2.7 per share, from...
ABC Ltd issues a $18 million IPO providing proceeds to ABC of $2.7 per share, from an offer price to the public of $3 per share. The company's legal fees, ASIC registration fees, and other administrative costs are $441,000. The company's share price increases 14 per cent on the first day. What is the underwriting cost? (in millions of dollars to the nearest three decimal places; don't use the $ sign eg 7.897) When ABC Company went public in September...
An IPO is offered at $14 per share for 6 million shares. The IPO underwriters had a spread of 7.5%. What proceeds did the firm receive from the IPO? OA. $77.7 million B. $90.3 million O C. $6.3 million O D. $84 million OE. $75 million
Felton Publishing recently completed its IPO. The stock was offered at a price of $13.31 per share. On the first day of trading, the stock closed at $18.41 per share. If Felton Publishing paid an underwriting spread of 6.9% for its IPO and sold 5 million shares, what was the total cost (exclusive of underpricing) to it of going public? The total cost of going public was $million. (Round to one decimal place.)
Wallace Publishing recently completed its IPO. The stock was offered at a price of $14.74 per share. On the first day of trading, the stock closed at $18.71 per share. If Wallace Publishing paid an underwriting spread of 6.4% for its IPO and sold 5 million shares, what was the total cost (exclusive of underpricing) to it of going public? The total cost of going public wa on. (Round to one decimal place.)
A company prices its IPO of 120 million shares through an
underwritten offering at a price to the public of $20 per share.
100 million shares are being sold by the company and 20 million
shares are being sold by selling shareholders. The underwriting
discount is 5%. The underwriters are granted an over-allotment
option covering 15% of the shares sold. The shares immediately
trade up to $25 per share in the first day of trading. Answer the
following questions:
The...
You are negotiating with your underwriters in a firm commitment offering of 12 million primary shares. You have two options: set the IPO price at $24.00 per share with a spread of 6%, or set the price at $23.20 per share with a spread of 4%. Which option raises more money for your firm? You can operatorating with over en ima firm commitm The net price to the firm of the first option is $ . (Round to the nearest...
Most questions answered within 3 hours.
-
Determine the temperature (in Celsius) at which 1.00 mole of an
ideal gas will have a...
asked 13 minutes ago -
Japan’s combination of X and Y
Canada’s combination of X and Y
100x and 0y
50x...
asked 6 minutes ago -
[1] Household statistics include individuals living alone or in
groups in:
A) apartments.
B) military barracks....
asked 16 minutes ago -
What is the % w/v when 80 mL of a 2.0% solution is mixed with 50...
asked 20 minutes ago -
How can I solve the following using a TI83
Claim: Most adults would erase all of...
asked 32 minutes ago -
Analysis of 3-ethyl-3-buten-2-ol gave C, 72.13%; H, 11.92%.
Calculate the percent deviation of these results from...
asked 29 minutes ago -
Which VALS segment is most likely to have a top of the line
brand new (2015)...
asked 33 minutes ago -
Write a program to score the paper-rock-scissor game. Each of
two users types in either P,R...
asked 53 minutes ago -
Calculate the equillibrium constent K for a redox reaction that
has E°cell = -.98 V at...
asked 1 hour ago -
A concave spherical mirror has a radius of curvature of
magnitude 19.6 cm.
(a) Find the...
asked 1 hour ago -
3. draw a diagram of the magnetic field:
a. around a long straight wire with a...
asked 1 hour ago -
If you titrated 30.0 mL of 0.1 M HCl with 0.1 M NaOH, indicate
the approximate...
asked 1 hour ago