Question

Issuing securities.  Bruce Wayne is going public with his new business. Berkman Investment Bank will be his banker and is doing a best efforts sale with a 3.7% commission fee. The SEC has authorized Wayne 5,120,000 shares for this issue. He plans to keep 1,140,000 shares for​ himself, hold back an additional 230,000 shares according to the​ green-shoe provision for Berkman Investment​ Bank, pay off Venture Capitalists with 460,000 ​shares, and sell the remaining shares at ​$15.97 a share. Given the bids at the auction​ (shown on the table​ here) distribute the shares to all bidders using a​ pro-rata share​ procedure, and assume Berkman Investment Bank takes its​ green-shoe shares. What is the total cash flow to Wayne after the​ sale? To Berkman Investment​ Bank?

Bidder	Quantity Bid
Gotham Pension Fund	1,830,000
Clark Kent Investors	1,290,000
Central City Insurance	560,000
Arthur Curry	360,000
Barry Allen	340,000
Total	4,380,000

1) How many shares does Gotham Pension, Clark Kent, Central City, ​Arthur Curry, Barry Allen gets? (round to the nearest whole number)

2) The total cash flow to Wayne after the sale is?

3)The total cash flow to Berkman Investment Bank after the sale is?

Answer 1