FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose a biotech company in Boston, Massachusetts, completes an $86 million IPO priced to the public at $50 per share. The firm receives $47 per

Suppose a biotech company in Boston, Massachusetts, completes an $86 million IPO priced to the public at $50 per share. The firm receives $47 per share, and the out-of-pocket expenses are $470,000. The stocks closing price at the end of the first day is $59. What is the total cost to the firm of issuing the securities?

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

Fundamentals of Financial Management

Fundamentals of Financial Management

Authors: Eugene F. Brigham, Joel F. Houston

Concise 6th Edition

324664559, 978-0324664553

More Books

Students also viewed these Finance questions

Question

3. Which issues, if any. were undiscussable?

Answered: 1 week ago

Question

★★★★★
In 2012, the total payroll for the New York Yankees was almost $ 200 million, while the total payroll for the Oakland Athletics (a team known for using base-ball analytics or sabermetrics) was about...

Answered: 1 week ago

Question

★★★★★
Suppose a biotech company in Boston, Massachusetts, completes an $86 million IPO priced to the public at $50 per share. The firm receives $47 per share, and the out-of-pocket expenses are $470,000....

Answered: 1 week ago

Question

★★★★★
Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost of capital of 15 percent. Selected financial information (in thousands of dollars) for the first year of business...

Answered: 1 week ago

Question

★★★★★
plaease asap 2. (3 marks) A market has two risky assets, A and B, whose rates of return have mean PA= 8 and B = 2, respectively. The equation of the pop curve is 0 = 3 - 24p + k for some constant k....

Answered: 1 week ago

Question

★★★★★
An airplane used for any particular flight on Computing Airlines has a capacity of n passengers, where n is a discrete random variable with z-Transform: F n (z) = 2A [0.5z 6 + 0.3z 7 + 0.2z 8 ] 5...

Answered: 1 week ago

Question

★★★★★
5. You have recently launched a brand of chocolate snack bar. This is a very competitive category with many brands and variants. Prior research has suggested that the attributes consumer care about...

Answered: 1 week ago

Question

★★★★★
CLUB TED EXERCISE 1 Round 1 Determined to live a life where winter is a distant memory, you are establishing a new resort business on a small tropical island. Building has started, and you are...

Answered: 1 week ago

Question

★★★★★
Briefly describe the components of a change management project plan....

Answered: 1 week ago

Question

★★★★★
4. What are the determinants of supply? What happens to the supply curve when any of these determinants change? Distinguish between a change in supply and a change in the quantity supplied, noting...

Answered: 1 week ago

Question

★★★★★
3. Explain the law of supply. Why does the supply curve slope upward? How is the market supply curve derived from the supply curves of individual producers? LO3.3

Answered: 1 week ago

Question

★★★★★
2. What are the determinants of demand? What happens to the demand curve when any of these determinants change? Distinguish between a change in demand and a movement along a fixed demand curve,...

Answered: 1 week ago

Previous Question Next Question