Amazon.com issued an initial public offering in May of 1997.Prior to its IPO, the following information on shares outstanding was listed in the final prospectus:

Shareholders Prior to IPO Number of Shares Owned

Jeffrey Bezos

9,885,000

L. John Doerr

3,401,376

Tom Alberg

195,000

Scott Cook

75,000

Patricia Stonesifer

75,000

All directors and executive officers

15,688,925

Total new shares available for public purchase

3,000,000

Total shares outstanding after IPO

23,858,702

As indicated above, the firm issued 3,000,000 new shares in the IPO.The initial price was $18.00 per share with investment bankers retaining $1.26 of that price as fees.The final first-day closing price was $23.50.

1.What were the total proceeds from this offering (the new shares issued)? How much of that total went to Amazon (net of fees)?How much went to the investment bankers?What percent went to the investment bankers?

2.Mr. Doerr owned a significant number of shares.What was the market value of these shares at the end of the first day of trading?

3.What was the total market value of Amazon.com following its first day as a publicly held company?