Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In April 2019, Van Dyck Exponents offered 180 shares for sale in an IPO. Half of the shares were sold by the company and the

In April 2019, Van Dyck Exponents offered 180 shares for sale in an IPO. Half of the shares were sold by the company and the other half by existing shareholders, each of whom sold exactly half of their existing holding. The offering price to the public was $66 and the underwriters received a spread of 6%. The issue was heavily oversubscribed and on the first day of trading the stock price rose to $161.

1. a-1. Issue proceeds to company?

2. a-2. Issue proceeds to shareholders?

3. b. Commission?

4. c. Money left on table?

5. d. Selling shareholders cost?

Please show calculations. Thanks.

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_2

Step: 3

blur-text-image_3

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

Financial Accounting An Introduction

Authors: Jacqui Kew, Alex Watson

4th Edition

0199046484, 978-0199046485

More Books

Students also viewed these Accounting questions

Question

understand possible effects of lifestyle risk factors;

Answered: 1 week ago