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Thank you! Zoom Delivery Ltd, an online parcel delivery service is expanding rapidly after the pandemic caused by Covid-19. It is planning to raise $35
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Zoom Delivery Ltd, an online parcel delivery service is expanding rapidly after the pandemic caused by Covid-19. It is planning to raise $35 million (this is the net amount required) to finance its business expansion. The offer price is $20 per share to the public and the underwriter charges 7% spread with a standby underwriting arrangement. ii. Assume that the issue becomes unsuccessful, as they only receive 95% subscriptions of the total number of shares offered. What would be the total proceeds and how much would the company and the underwriter receive respectivelyStep by Step Solution
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