Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pls do not give the answer in excel forms XYZ Ltd plans to do a share offering for its expansion to the international market. The

image text in transcribed

Pls do not give the answer in excel forms

XYZ Ltd plans to do a share offering for its expansion to the international market. The net amount required for the expansion is $46 million. The underwriter spread for the share offering is 8%. The market price is $25 per share on the offering day. The total out-of-pocket expense is $320,000. The company's share price becomes $30 on the first day of trading. a) Calculate the total amount needed to be raised in the share offering. (1 mark) b) Calculate the total underwriting spread in dollars. (1 mark) c) Calculate the total underpricing for the share offering. (1 mark) d) Calculate the total IPO costs for the share offering. (1 mark)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Residential Lease Agreement 1 Legal Form Template

Authors: Lawkoala

1st Edition

979-8852991782

More Books

Students also viewed these Finance questions

Question

Define marketing concepts.

Answered: 1 week ago

Question

1 what does yellow colour on the map represent?

Answered: 1 week ago