On January 20,

MetropolitanMetropolitan

Inc. sold

1010

million shares of stock in an SEO. The market price of

MetropolitanMetropolitan

at the time was

$ 42.00$42.00

per share. Of the

1010

million shares sold,

55

million shares were primary shares being sold by the company, and the remaining

55

million shares were being sold by the venture capital investors. Assume the underwriter charges

5.5 %5.5%

of the gross proceeds as an underwriting fee.

a.	How much money did MetropolitanMetropolitan raise?
b.	How much money did the venture capitalists receive?
c.	If the stock price dropped 3.7 %3.7% on the announcement of the SEO and the new shares were sold at that price, how much money would MetropolitanMetropolitan receive?