Owners of the Internet bargain site FROOGLE.com have decided to take their company pubic by conducting an
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Owners of the Internet bargain site FROOGLE.com have decided to take their company pubic by conducting an initial public offering of common stock. They have agreed with their investment banker to sell 3.3 million shares to investors at an offer price of $14 per share. The underwriting spread is 7 percent.
a. What is the net price that FROOGLE.com will receive for their shares?
b. How much money will FROOGLE.com raise in the offering?
c. How much do FROOGLE.com’s investment bankers make on this transaction?
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a If the underwriting spread is 7 percent the...View the full answer
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