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this is one question with subparts A company is doing a share offering underwritten by an investment bank. The company plans to issue 650,000 shares
this is one question with subparts
A company is doing a share offering underwritten by an investment bank. The company plans to issue 650,000 shares at a market price of $23.7 per share. The investment bank offers stand-by underwriting at a fee of 6% of the total amount raised. a) If the company receives subscriptions for 100% of the total shares offered, calculate how much the company would receive from the IPO. (Round your answer to the nearest dollar. Do not include the $ symbol. Do not use comma separators. E.g. 123456) b) If the company only receives subscriptions for 95.5% of the total shares offered, calculate how much the company would receive from the IPO. (Round your answer to the nearest dollar. Do not include the $ symbol. Do not use comma separators. E.g. 123456) c) If the company only receives subscriptions for 95.5% of the total shares offered, calculate how much the investment bank would receive from the IPO. (Round your answer to the nearest dollar. Do not include the $ symbol. Do not use comma separators. E.g. 123456)Step by Step Solution
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