How many shares-estimated stock price

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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?

Reference no: EM1337998

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