How much capital did the ipo raise for dolby laboratories

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Question - Ray Dolby started Dolby Laboratories and since then has been a leader in the entertainment industry and consumer electronics. Closely held since its founding in 1965, Dolby decided to go public. Here's an AP news report:

DOLBY'S IPO EXPECTED TO PLAY SWEET MUSIC - The initial public offering market is hoping for a big bang this week from Dolby Laboratories Inc. The San Francisco company, whose sound systems and double-D logo are ubiquitous in the movie industry as well as in consumer electronics, plans to sell 27.5 million shares for $13.50 to $15.50 each, so it is safe to assume they would sell for an average of $14.50 each. Founded by Cambridge-trained scientist Ray Dolby 39 years ago, the company started out manufacturing noise-reduction equipment for the music industry that eliminated the background "hiss" on recordings, and has since expanded to encompass everything from digital audio systems to Dolby Surround sound. The company's IPO, which is lead-managed by underwriters Morgan Stanley and Goldman Sachs Group Inc., is expected to do well not only because of its brand recognition, but also because of its strong financials. (AP)

Required -

a. Assuming the shares are issued at the midpoint of the price range indicated, how much capital did the IPO raise for Dolby Laboratories before any underwriting discount and offering expenses?

b. If the par amount is $0.01 per share, what journal entry did Dolby use to record the sale?

Reference no: EM132695559

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