On January20, Whalen Inc., sold 8 million shares of stock in an SEO. The market price of Whalen at the time was $42.25 per share. Of the 8 million sharessold, 5 million shares were primary shares being sold by thecompany, and the remaining 3 million shares were being sold by the venture capital investors. Assume the underwriter charges 5.3% of the gross proceeds as an underwriting fee.

a. How much money did Whalen raise?

b. How much money did the venture capitalistsreceive?

c. If the stock price dropped 2.4% on the announcement of the SEO and the new shares were sold at thatprice, how much money would Whalen receive?