YVR, Inc. just announced a 13-million-share SEO (seasoned equity offering) at $43 per share. If all...
YVR, Inc. just announced a 13-million-share SEO (seasoned equity offering) at $43 per share. If all of the SEO shares are primary shares and its underwriter charges 8% of the gross proceeds, how much new capital will YVR raise?
After underwriting fees, YVR will raise $____ million. (Round to two decimal places.)
Homework Answers
NEW CAPITAL RAISED = (NO OF SHARES X PRICE PER SHARE)*(1- UNDERWRITER CHARGE)
NEW CAPITAL RAISED = (13 X 43) *(1-0.08) = 514.28 MILLION
ANSWER : $514.28 million (Thumbs up please)
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