A Brazilian company called Netshoes completed its IPO on April 12,

2017,

and listed on the NYSE. Later, Netshoes sold

8,250,000

shares of stock to primary market investors at an IPO offer price of

$18.00,

with an underwriting discount of

6.5%.

Secondary market investors, however, were paying only

$16.10

per share for Netshoes'

31,025,936

shares of stock outstanding.

a. Calculate the total proceeds for Netshoes' IPO.

b. Calculate the dollar amount of the underwriting fee for Netshhoes' IPO.

c. Calculate the net proceeds for Netshoes' IPO.

d. Calculate market capitalization for Netshoes' outstanding stock.

e. Calculate IPO underpricing for Netshoes' IPO.

f. Explain the IPO underpricing for Netshoes.