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show working please ABC Inc currently has 220 shares outstanding. 160 of these are owned by the firm's founders, and 60 are owned by a

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ABC Inc currently has 220 shares outstanding. 160 of these are owned by the firm's founders, and 60 are owned by a private equity firm. The firm plans to offer 150 shares in an IPO, which consists of 90 shares that will be issued as part of the IPO and all 60 of the private equity firm's shares. The IPO price is $49.00 per share. Assume that the underwriter's commission is 1.4%. Answer the following questions. Based on the IPO offer price, calculate the market capitalization of the firm. How much will each party make in the IPO? The three parties are The underwriter The private equity firm ABC Inc O O O

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