CASE 4 (25 points) Jockey Club Corporation has just gone public through an IPO) Under a firm commitment agreement, lockey Club received 21.39 for each of the 20 million shares sold. The initial offering price was (23 per share, and the stock rose to 28.41 per share in the first few minutes of trading. Repulse Bay paid E950,000 in direct legal and other costs and 320,000 in indirect costs. What was net amount raised? (4 points) b. What was the underwriters spread? (4 points) What was the cost of under-pricing? 14 points) t. What were the total costs? (4 points) . What was the flotation cost as a percentage of the net amount raised? (4 points) Discuss advantages and disadvantages of a firm going public. (5 points) Rubrics 9-10 8.89 7.79 6-6.9 Descriptor The student demonstrates an excellent understanding of the concepts The student demonstrates a good understanding of the concepts The student demonstrates a fair understanding of the concepts The student demonstrates some, but insufficient understanding of the concepts The student demonstrates insufficient understanding of the concepts. They may mention some relevant ideas or concepts, although it is clear that the relationship between them is not understood by the 3-5.9 The student demonstrates insufficient understanding of the concepts and does not mention any relevant ideas of concepts The student leaves the question blankor.cheats CASE 4 (25 points) Jockey Club Corporation has just gone public through an IPO) Under a firm commitment agreement, lockey Club received 21.39 for each of the 20 million shares sold. The initial offering price was (23 per share, and the stock rose to 28.41 per share in the first few minutes of trading. Repulse Bay paid E950,000 in direct legal and other costs and 320,000 in indirect costs. What was net amount raised? (4 points) b. What was the underwriters spread? (4 points) What was the cost of under-pricing? 14 points) t. What were the total costs? (4 points) . What was the flotation cost as a percentage of the net amount raised? (4 points) Discuss advantages and disadvantages of a firm going public. (5 points) Rubrics 9-10 8.89 7.79 6-6.9 Descriptor The student demonstrates an excellent understanding of the concepts The student demonstrates a good understanding of the concepts The student demonstrates a fair understanding of the concepts The student demonstrates some, but insufficient understanding of the concepts The student demonstrates insufficient understanding of the concepts. They may mention some relevant ideas or concepts, although it is clear that the relationship between them is not understood by the 3-5.9 The student demonstrates insufficient understanding of the concepts and does not mention any relevant ideas of concepts The student leaves the question blankor.cheats