P23 Initial public offeringOn April 18, 2019, the video conferencing company, Zoom, completed its IPO on the Nasdaq. Zoom sold 9,911,434 shares of Class A stock with one vote per share at an offer price of $36 and an underwriter discount of $1.80 per share. Zooms closing stock price on the first day of trading on the secondary market was $62, and 24,070,086 Class A shares were outstanding. There were also 232,318,285 shares of Class B common stock with 10 votes each outstanding and held privately by Zoom insiders.

a. Calculate the total proceeds for Zooms IPO.

b. Calculate the percentage underwriter discount.

c. Calculate the dollar amount of the underwriting fee for Zooms IPO.

d. Calculate the net proceeds for Zooms IPO.

e. Calculate Zooms IPO underpricing.

f. Calculate Zooms market capitalization assuming that market value per share is the same for both classes of stock.

g. What percentage of Zooms total common stock (Class A plus Class B) do Class A stockholders own after the IPO? What percentage of votes do they control?