Question
On January 20, Sullivan Inc. sold 9 million shares of stock in an SEO. The market price of Sullivan at the time was $41.50 per
On January 20, Sullivan Inc. sold 9 million shares of stock in an SEO. The market price of Sullivan at the time was $41.50 per share. Of the 9 million shares sold, 5 million shares were primary shares being sold by the company, and the remaining 4million shares were being sold by the venture capital investors. Assume the underwriter charges 5.4% of the gross proceeds as an underwriting fee.
| a. | How much money did Sullivan raise? (Round to 2 decimal places) |
| b. | How much money did the venture capitalists receive? (Round to 2 decimal places) |
| c. | If the stock price dropped 3.8% on the announcement of the SEO and the new shares were sold at that price, how much money would Sullivan receive? (Round to 2 decimal places) |
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Climate Finance
Authors: Richard B. Stewart, Benedict Kingsbury, Bryce Rudyk
1st Edition
