Question

Just need the last part

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 4.4% commission fee. The SEC has authorized Wayne 4,860,000 shares for this issue. He plans to keep 1,200,000 shares for himself, hold back an additional 160,000 shares according to the green-shoe provision for Berkman Investment Bank, pay off Venture Capitalists with 540,000 shares, and sell the remaining shares at $16.16 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? How many shares does Clark Kent get? 731294 shares (Round to the nearest whole number.) How many shares does Central City get? 403953 shares (Round to the nearest whole number.) How many shares does Arthur Curry get? 278588 shares (Round to the nearest whole number.) How many shares does Barry Allen get? 229835 shares (Round to the nearest whole number.) What is the total cash flow to Wayne after the sale? $Round to the nearest dollar.) Quantity Bid E Bidder Gotham Pension Fund Clark Kent Investors Central City Insurance Arthur Curry Barry Allen Total 1,890,000 1,050,000 580,000 400,000 330,000 4,250,000

Answer 1

solution: shares Authorized Less: Wayne's Holdings Less :green-shoe Less :Venture Capitalists Available 4860000 1200000 160000 540000 2960000 Issue price 16.16 4.40% comission fee Quantity bid Quantity alloted Clark Kent Central City Arthur Curry Barry Allen 1050000 580000 400000 330000 b-a*2960000/4250000 731,294 403,953 278,588 229,835 Total cash flow to wayne after the sale 2960000*16.16* (1-0.044) 45,728,922 Total cash flow to Berkman Investment bank 2,104,678 2960000 16.160.044