Answered step by step
Verified Expert Solution
Question
1 Approved Answer
a. calculate the number if shares issued through this SEO b. What would be the SEO's first-day return (rate of return for an investor on
a. calculate the number if shares issued through this SEO b. What would be the SEO's first-day return (rate of return for an investor on the first day of trading) if the first day of trading closes at $108/share? Is this consistent with the historical evidence of the first day returns for the US' IPO market? (2 pts.) Ralph Lauren Corporation (NYSE: RL) recently issued stock in a Seasoned Equity offering in which it received a total of $872.65 million in new capital funding. The underwriter used a firm commitment offering in which the offer price was $110 and the underwriter's spread was $7.50. RL also paid legal and other administrative costs of $3.5 million for the SEO. (2 pts.) Ralph Lauren Corporation (NYSE: RL) recently issued stock in a Seasoned Equity offering in which it received a total of $872.65 million in new capital funding. The underwriter used a firm commitment offering in which the offer price was $110 and the underwriter's spread was $7.50. RL also paid legal and other administrative costs of $3.5 million for the SEO
a. calculate the number if shares issued through this SEO
b. What would be the SEO's first-day return (rate of return for an investor on the first day of trading) if the first day of trading closes at $108/share? Is this consistent with the historical evidence of the first day returns for the US' IPO market?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started