Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Zimba Technology Corp. recently went public with an initial public offering of 2.5 million shares of stock. The underwriter used a firm commitment offering in
Zimba Technology Corp. recently went public with an initial public offering of 2.5 million shares of stock. The underwriter used a firm commitment offering in which the net proceeds were $7.59 per share and the underwriter's spread was 8 percent of the gross proceeds. Zimba also paid legal and other administrative costs of $270,000 for the IPO.
Calculate the gross proceeds per share and the total funds received by Zimba from the sale of the 2.5 million shares of stock.
Can someone assist with how to solve this?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started