How much cash will hilltop receive from the ipo

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a) Hilltop Enterprises has decided to take its company public by offering a total of 80,000 shares of common stock to the public in an initial public offering (IPO). Hilltop has hired an underwriter who arranges a firm commitment offering and suggests an initial selling price of $32 a share with a 9 percent spread. As it turns out, the underwriters only sell 68,500 shares. How much cash will Hilltop receive from the IPO?

b) Suppose a best efforts offering was arranged instead. How much cash will Hilltop receive from the IPO?

Reference no: EM132395503

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