BC Tutoring LLC (to be renamed to BC Tutoring Inc.) just offered 100 equity shares for sale in its IPO last month. Half of the shares were issued by the company and the other half were sold by the company's partners (existing shareholders) who have been holding the shares for a long time. The offering price to the public was $50 and the underwriters received a 7% underwriting spread. This commission charge will apply to all 100 shares issued by the company. The issue was heavily oversubscribed and the stock price rose to $160 on the first day of trading.

(a) How many shares are to be sold in the primary offering? How many will be sold in the secondary offering?

(b) How much commission did the underwriters receive (in dollars)? (Hint: underwriting spread in dollars)

(c) What were the net proceeds of the equity issue to the company (in dollars)? (Hint: net proceeds in this case is the money the company, not the existing shareholders selling their stock holdings; also, don't forget to deduct the underwriting commissions.)

(d) What were the net proceeds of the equity issue received by the company's partners (in dollars)? (Hint: because a half of the shares were sold by these existing shareholders, net proceeds in this case is the money the existing shareholder received after deducting underwriting commissions.)

(e) In total, how much money was left on the table? (Hint: money left on the table is usually measured by the money lost to shareholders due to IPO under-pricing by the underwriters.)

(f) For the existing shareholders who were selling shares in this IPO, what was the total cost to them? (Hint: this should include both commission to underwriters as in (d) and money left on table as in (e).)