Offer price and rights issue for Roundtree Software
Not what you're looking for?
1. Roundtree Software is going public using an auction IPO. The firm has received the following bids:
Price Number of shares
14.00 100,000
13.80 200,000
13.60 500,000
13.40 1,000,000
13.20 1,200,000
13.00 800,000
12.80 400,000
Assuming Roundtree would like to sell 1.8 million in its IPO, what will the winning auction offer price be?
2. MacKenzie Corporation currently has 10 million shares of stock outstanding at the price of $40 per share. The company would like to raise money and has announced a rights issue. Every existing shareholder will be sent one right per share of stock that he or she owns. The company plans to require ten rights to purchase one share at a price of $40 per share. Assuming the rights issue is successful, how much money will it raise?
Purchase this Solution
Solution Summary
The solution explains how to determine the winning auction offer price and the amount of money raised from a rights issue
Solution Preview
1. Roundtree Software is going public using an auction IPO. The firm has received the following bids:
Price Number of shares
14.00 100,000
13.80 200,000
13.60 500,000
13.40 1,000,000
13.20 1,200,000
13.00 800,000
12.80 400,000
Assuming Roundtree would like to sell 1.8 million in its IPO, what ...
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
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.