Investment Management

1. Uber plans to issue 200 million shares through an IPO offering. The shares will be offered at $30 a share and it will be a firm commitment offering The IPO fees are a discount of 6% plus $50 million. How much money will the firm get from through the IPO?

2. You decided to creat an index of social media stocks. The initial index has 3 stocks: GOOG, FB and TWTR. The price of these stocks when the index was created was $700, $100 and $40 respectively. What is the divisor if the index value start at 100? One year from the creation of the index, GOOG and FB has gone up by $50 and $20 respectively, while TWTR has decline by $20. What is the index value? What is the percentage change of index value if GOOG has gone through a 10 for 1 split before the end of the year?