User Account

All Pages

Calculate the total underwriting spread in dollars

Assignment Help Financial Accounting
Reference no: EM132773113

A company needs to raise $88 million (This is the gross amount before
costs come off.) through an IPO. The company takes the advice of its underwriter and sets the IPO market price at $9.80 per share. The shares are underwritten at $8.50 per share. The out-of-pocket expenses are $560,000 in total. Upon the success of the IPO, the closing price at the end of the first trading day is $11.20 per share.

Problem 1: Calculate the number of shares sold in the share offering.

Problem 2: Calculate the total underwriting spread in dollars.

Problem 3: Calculate the total underpricing of all shares sold in the share offering. Round your answer to the nearest dollar.

Problem 4: Calculate the total cost for the IPO. Round your answer to the nearest dollar.

Reference no: EM132773113

Questions Cloud

Calculate the bond price on the issue date : Recalculate the bond price on the issue date if we assume that semi-annual coupons would be paid by comparable risk coupon bonds.
Which bond would give highest return based on expectation : If expect the market interest rate will keep decreasing in the future, which of the following bond would give the highest return based on this expectation?
How do the roles differ in the labor relations process : Outline the difference in responsibilities of a local union representative, a shop steward, and an international or national union representative.
Calculate the dividend payable at the end of year three : Calculate the dividend payable at the end of year 3. An ordinary share pays annual dividends and is expected to pay a dividend of $5 in one year.
Calculate the total underwriting spread in dollars : Calculate the total underwriting spread. Calculate the total underpricing of all shares sold in the share offering. Round your answer to the nearest dollar.
What impact do collective bargaining and unions : What impact do collective bargaining and unions in healthcare have on you as a healthcare professional? What is the impact for the patient?
Explain how the four key areas relate to hr staffing : What are the four key areas of the balanced scorecard? What question does each one answer? Explain how these four key areas relate to HR staffing.
How much the underwriter would receive from share offering : If the company only receives subscriptions for 96% of the total shares offered, calculate how much the underwriter would receive from the share offering.
What is the importance of queuing models : What is and what is the importance of Queuing models in marketing managements? What is and what are the benefits of learning computer simulation: basic concept.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd