Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need help with this please show your formulas A company is going public at $17 and will use the ticker x. The underwiters will
I need help with this please show your formulas A company is going public at $17 and will use the ticker x. The underwiters will charge a 7 percent spread. The company is issuing 24 million shares, and insiders will continue to hold an additional 48 miltion shares that will not be part of the IPO. The company will also pay $3 million of audit fees, $5 million of legal fees, and $900,000 of printing fees. The stock closes the first day at $20. Answer the following questions: a. At the end of the first day, what is the market capitalization of the company? Enter your answer in millions. For example, an answer of $1.2 milion should be entered as 1.2, not 1,200,000. Do not round intermediate calculations. Round your answer to one decimal place. b. Whint are the total costs of the offering? Include underpricing in this calculation. Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000, Do not round intermediate calculations. Round your ansyer to one decimal place. \$. milion
I need help with this please show your formulas
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