Sherman Brothers, Inc., sold 4 million shares in its IPO, at a price of $18.50 per share. Management negotiated a fee (the underwriting spread) of 7% on this transaction. What was the dollar cost of this fee?© BrainMass Inc. brainmass.com June 3, 2020, 10:31 pm ad1c9bdddf
If Sherman Brothers, Inc. sold 4,000,000 shares at a price of $18.50 per share, it received $74,000,000 in its ...
This solution explains how to calculate the transaction fee due to an underwriting firm based on a percentage fee.