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PLEASE ANSWER THIS QUESTION A company is going public at $16 anctwill use the ticker XYZ. The underweiters will charge a 7 percent spread. The
PLEASE ANSWER THIS QUESTION
A company is going public at $16 anctwill use the ticker XYZ. The underweiters will charge a 7 percent spread. The company is issuing 23mili on shares, and insiders will continue to hold an additional 46 miliion shares that will not be part of the IPO. The company will also pay $2 million of audit fees, $3.5 million of legal fees, and $700,000 of printing feet. The stock closes the first day at $20. Answer the following questions: a. At the end of the first doy, what is the market capitalization of the company? Enter your answer in millions. For example, an answer of $1.2 milion should be entered as 1.2, not 1,200,000. Do not round intermediate calculations. Round your answer to one decimal place. 5 million b. What are the total costs of the offering? tnelude underpnicing in this calculation. Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Do not round intermediate calculations. Round your answer to one decimal place. 4. million Step by Step Solution
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