Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

B-Square Corp. (NasdaqNM: BSQR) went public on October 20, 1999. Its lead underwriter was Credit Suisse First Boston. The IPO prospectus listed the following information

B-Square Corp. (NasdaqNM: BSQR) went public on October 20, 1999. Its lead underwriter was Credit Suisse First Boston. The IPO prospectus listed the following information about shares outstanding and new investors: B-Square issued 4,000,000 shares at a price to the public of $15.00/share, with the underwriting syndicate retaining $1.05 as fees. The final price at the end of the first day was $25.625. Based on the above information, answer the following: i) What were the total proceeds from this offering? ii) What proceeds were retained by B-Square? iii) What proceeds were retained by the investment banker? iv) What was B-Squares total market capitalization after the IPO? v) Calculate the under-pricing and money left on the table for B-Square.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Accounting Information Systems

Authors: Vernon Richardson, Chengyee Chang, Rod Smith

2nd edition

978-1260153156

Students also viewed these Finance questions

Question

Describe different dimensions of suicide.

Answered: 1 week ago