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a company undertakes an IPO, with an offering of 1 million shares at an offer price of $15. Immediately after the offering, the shares begin

  1. a company undertakes an IPO, with an offering of 1 million shares at an offer price of $15. Immediately after the offering, the shares begin trading at a market price of $17.50. The undrerwriter purchased the shares from the issuing firm for a price of $14 per share and the company incurred an additional $600,000 of costs related to the offering. What are the company's net proceeds of the offering (per share and total) after all costs? What is the total issue cost of the offering, including the effects of underpricing?
  2. a company has total assets of $100,000 and earnings before interest and taxes of $10,000. The company is 40% debt financed and 60% equity financed. The interest rate on the company's debt is 6% and the corporate tax rate is 25%. Based on this information, what is the company's actual after-corporate-tax free cash flow for all investors and and what would after-tax free cash flow be if the company has no debt financing?

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