Question
eBay, Inc. went public in September of 1998. In the IPO, eBay issued 3,500,000 new shares. The initial price to the public was $18.00 per
eBay, Inc. went public in September of 1998. In the IPO, eBay issued 3,500,000 new shares. The initial price to the public was $18.00 per share. The first day closing price was $44.88
If the investment bankers retained $1.26 per share as fees, what was the market cap of the new shares of eBay?
| $58,590,000 | ||
| $3,500,000 | ||
| $63,000,000 | ||
| $94,080,000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
