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A company needs to raise $60 million (This is the net of cost amount required by the company) in its IPO. The total of underwriting
A company needs to raise $60 million (This is the net of cost amount required by the company) in its IPO. The total of underwriting fee and the out-of-pocket expenses are 5% of the total amount raised in the IPO. The market share price increased by 20% right after the IPO. a) Calculate the total amount need to be raised in the IPO. (Round your answer to the nearest dollar. Do not include the $ symbol. Do not use comma separators. E.g. 123456) b) Calculate the total of underwriting spread and the out-of-pocket expenses for the IPO. (Round your answer to the nearest dollar. Do not include the $ symbol. Do not use comma separators. E.g. 123456) c) Calculate the total underpricing of all shares issued in the IPO. (Round your answer to the nearest dollar. Do not include the $ symbol. Do not use comma separators. E.g. 123456) d) Calculate the total cost for the IPO. (Round your answer to the nearest dollar. Do not include the $ symbol. Do not use comma separators. E.g. 123456)
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