Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

aitial Public Offering. A Brazilian company called Netshoes completed IPO on April 12, 2017, and listed on the NYSE. Later, Netshoes sold 8.250.000 shares of

image text in transcribed
aitial Public Offering. A Brazilian company called Netshoes completed IPO on April 12, 2017, and listed on the NYSE. Later, Netshoes sold 8.250.000 shares of stock to primary marketinvestors at an IPO offer price of $17.04. nderwriting discount of 6.5%. Secondary market investors, however, were paying only 516 39 per share for shoes 31.025.936 shares of s t anding - Calculate the total proceeds for Netshoes IPO. - Calculate the dollar amount of the underwriting fee for Netshoes IPO Calculate the not proceeds for Netshoes IPO. - Calculate market capitalbion for Netshoes outstanding stock Calculate IPO underpricing for Netshoes IPO Explain the IPO underpricing for Netshoes - The total proceeds for Netshoes' IPO is $ (Round to the nearest dollar.) - The dollar amount of the underwriting fee for Netshoes IPO ist (Round to the nearest dollar) - The not proceeds for Netshoes' IPO - (Round to the nearest dollar) -Netshoes' market capitalization (Round to the nearest dollar) Netshoes IPO underpricing is % (Round to two decimal places) Explain the IPO underpricing for Notes Select the best answer below) A B Negative underpricing indicates secondary market investors are wiling to pay more for en shares the primary market investors were for new shares Negative underpricing indicates secondary market investors are not willing to pay as much for new shares as primary market investors were for e n shares Negative underpricing indicates primary market investors are not willing to pay as much for existing shares as secondary market investors were for new shares Negative underpricing indicates secondary market investors are not willing to pay as much for existing shares as primary market investors were for new shares O

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions