• 7. Suppose that a biotech firm in Pittsburgh raised $120 million in an I.P.O. The firm received $23 per share, and the stock sold to the public for $25 per share. The firm's legal fees, S.E.C. registration fees, and other out-of-pocket costs were $270,000. The firm's stock price increased 17.5% on the first day. What was the total cost to the firm of issuing the securities?
• 8. Why are traditional sources of funding not usually available for new or emerging businesses?
• 9. A firm is making an initial public offering. The investment bankers agree to a firm underwriting commitment for 500,000 shares that would be priced to the public at $36 a share. The underwriter's spread is 7%. What were the proceeds for the issuer and the underwriter?