Question
Lenzie Corporation has 4,000,000 shares outstanding and the company is about to issue 2,000,000 new shares in an IPO. The IPO price has been set
Lenzie Corporation has 4,000,000 shares outstanding and the company is about to issue 2,000,000 new shares in an IPO. The IPO price has been set at $25 per share and the underwriter spread is 9%. The IPO is a big success with investors and the share price rises to $55 the first day of trading.
a) How much did Lenzie Corporation raise from IPO?
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How To Understand Business Finance
Authors: Bob Cinnamon, Brian Helweg-Larsen
2nd Edition
0749460202, 978-0749460204
