IPO offering: how many shares, estimated stock price
Not what you're looking for?
A firm is planning an IPO. The underwriters say stock will sell at $20. The direct costs will be $800,000 and underwriters will charge a 7% spread.
(a) How many shares must be sold to net $30 million.
(b) If the stock price closes on day one at $22. per share how much will the firm have left on the table?
(c) What are the firms total costs for the IPO?
Purchase this Solution
Solution Summary
The solution computes estimated stock price, total costs of IPO, no. of shares in different scenario of IPO Offering.
Solution Preview
A
Net proceed = 20 * No. of shares - 800000 - 7%*20* No. of shares
That is 30,000,000 = 20 * S - 800,000 - ...
Purchase this Solution
Free BrainMass Quizzes
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.