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On January 2 0 , Metropolitan, Inc. sold 8 million shares of stock in an SEO. The market price of Metropolitan at the time was
On January Metropolitan, Inc. sold million shares of stock in an SEO. The market price of Metropolitan at the time was $ per share. Of the million shares sold, million shares were primary shares being sold by the company, and the remaining million shares were being sold by the venture capital investors. Assume the undenwriter charges of the gross proceeds as an underwriting fee.
a How much money did Metropolitan raise?
b How much money did the venture capitalists receive?
c If the stock price dropped on announcement of the SEO and the new shares were sold at that price, how much money would Metropolitan receive?
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