Calculating Costs of Issuing Stock Zimba Technology Corp. recently went public with an initial public offering of
Question:
Calculating Costs of Issuing Stock Zimba Technology Corp. recently went public with an initial public offering of 2.5 million shares of stock. The underwriter used a firm commitment offering in which the net proceeds was $8.05 per share and the underwriter's spread was 8 percent of the gross proceeds. Zimba also paid legal and other administrative costs of $250,000 for the IPO. Calculate the gross proceeds and the total funds received by Zimba from the sale of the 2.5 million shares of stock. (LG4)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Finance Applications And Theory
ISBN: 9780073530673
2nd Edition
Authors: Marcia Cornett, Troy Adair, John Nofsinger
Question Posted: