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12 + of Green Dome Industries has 8 million shares outstanding and is about to issue 10 million new shares in an IPO. The IPO

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12 + of Green Dome Industries has 8 million shares outstanding and is about to issue 10 million new shares in an IPO. The IPO price has been set at $15 per share, and the underwriting spread is 6%. The IPO is a big success with investors, and the share price rises to $35 the first day of trading. (a) What is amount of capital raised during the IPO? (1 marks) (b) What is the amount that Green Dome paus as the underwriter's spread? (1.5 marks)

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