rag question Question ID: 619 This question is worth 10 marks in total. This is a written calculation question, and you should perform the necessary calculations/working on paper to later be scanned and uploaded. Start a new page for this question. For dollar amounts, give your answer to the nearest cent. For interest rates, give our answer as a percentage rounded to 2 decimal places. If any parts of the question use values from earlier parts, use the EXACT values from earlier parts. QUESTION START a) Discuss two advantages and two disadvantages pf going public for firms. (4 marks) b) A company makes an initial public offering of shares to raise $350 million, at an offer price of $5 per share. The issue is underwritten at $4.70. The costs of preparing the prospectus, legal fees, ASIC registration and other administrative costs add up to $750,000. If the firms' share price closes at $5.20 on its first day of trade. What is the total cost of the IPO? (4 marks) c) Explain two important roles of investment bankers in the process of IPO. (2 marks) QUESTION END You will need to scan this question and upload it to Learn via the Final Exam submission link. Please disregard the box below (or enter anything you want into it), it doesn't have any effect on your grade. Answer: rag question Question ID: 619 This question is worth 10 marks in total. This is a written calculation question, and you should perform the necessary calculations/working on paper to later be scanned and uploaded. Start a new page for this question. For dollar amounts, give your answer to the nearest cent. For interest rates, give our answer as a percentage rounded to 2 decimal places. If any parts of the question use values from earlier parts, use the EXACT values from earlier parts. QUESTION START a) Discuss two advantages and two disadvantages pf going public for firms. (4 marks) b) A company makes an initial public offering of shares to raise $350 million, at an offer price of $5 per share. The issue is underwritten at $4.70. The costs of preparing the prospectus, legal fees, ASIC registration and other administrative costs add up to $750,000. If the firms' share price closes at $5.20 on its first day of trade. What is the total cost of the IPO? (4 marks) c) Explain two important roles of investment bankers in the process of IPO. (2 marks) QUESTION END You will need to scan this question and upload it to Learn via the Final Exam submission link. Please disregard the box below (or enter anything you want into it), it doesn't have any effect on your grade
