Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please answer parts A, B, and C On January 20, Sullivan Inc., sold 9 million shares of stock in an SEO. The market price of
please answer parts A, B, and C
On January 20, Sullivan Inc., sold 9 million shares of stock in an SEO. The market price of Sullivan at the time was $40.00 per share. Of the 9 million shares sold, 5 million shares were primary shares being sold by the company, and the remaining 4 million shares were being sold by the venture capital investors. Assume the underwriter charges 4.8% of the gross proceeds as an underwriting fee. a. How much money did Sullivan raise? b. How much money did the venture capitalists receive? c. If the stock price dropped 3.6% on the announcement of the SEO and the new shares were sold at that price, how much money would Sullivan receive Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started