How much money did metropolitan raise

Assignment Help Corporate Finance
Reference no: EM13197432

On January 20, Metropolitan, Inc., sold 8 million shares of stock in an SEO. The market price of Metropolitan at the time was $42.50 per share. Of the 8 million shares sold, 5 million shares were primary shares being sold by the company, and the remaining 3 million shares were being sold by the venture capital investors. Assume the underwriter charges 5% of the gross proceeds as an underwriting fee.

a. How much money did Metropolitan raise?

b. How much money did the venture capitalists receive?

c. If the stock price dropped 3% on announcement of the SEO and the new shares were sold at that price, how much money would Metropolitan receive?

Reference no: EM13197432

Questions Cloud

Difference of wacc based on market value : What is the difference of WACC based on market value weights and book weights - Please show formulas.A balance sheet shows a total of noncallable $45 million.
What is the marginal cost per bicycle : What is the marginal cost per bicycle?
What is a 95 percent confidence interval for the mean : Five years ago, an automobile manufacturer started offering an extended warranty to buyers of its sport-utility vehicle. The extended warranty covered defects occurring after the initial three-year warranty expired.
Compute the price elasticity of demand : Suppose that as the price of Y falls from $3.00 to $1.00 the quantity of Y demanded increases from 10 to 18.Compute the price elasticity of demand.
How much money did metropolitan raise : How much money did Metropolitan raise and how much money did the venture capitalists receive?
Write a statement about the confidence level : It randomly samples 100 of its alumni. The mean annual income was $59,000 with a standard deviation of $1,600. Find a 95% confidence interval for the true mean annual income of the nursing school alumni. Write a statement about the confidence leve..
Is supply cahin management for real or is just another fad : 1-is supply cahin management for real or it is just another fad does the answer to this question depend on how company pursues SCM2-what efforts would you make to assure that managers at Med-Tec didnt treat SCM as just another flavour of the month..
How many top three outcomes are there : The "Top Three" at a racetrack consists of picking the correct order of the first three horses in a race. If there are 10 horses in a particular race, how many "Top Three" outcomes are there?
Prepare financial statements from adjusted trial balance : Transfer these accounts and balances to a spreadsheet worksheet and prepare an Income statement, a Classified Balance Sheet, and a Statement of Retained Earnings all in good form using proper headings for each statement.

Reviews

Write a Review

Corporate Finance Questions & Answers

  Find the best estimate for the firms value

The companye valuation model, Bernile corporation value of operations is 750 million dollar. Its balance sheet demonstrate 50 million dollar of short-term investments unrelated to operations.

  Retirement and estate planning

Determine when you should start to think about retirement & real estate planning and you begin taking action? Explain your answer.

  Projected financial statements

As a firm progresses through the growth life-cycle stage, what kind of flexible account will it be more likely to use to balance the balance sheet?

  Solving financial analysis problem

Acme producing is a decentralized company. Sections are treated as investment centers. In recent years, Acme has been running about 11 percent ROA for company as a whole, and has a cost of capital of 9%.

  Determine appropriate portfolio beta

If someone were highly averse to risk, what type of beta would he or she be interested in when researching a company to add to an investment portfolio?

  Evaluate the optimal level of investment for a household

Evaluate total savings in each period.  Is the Investment/Saving market at equilibrium in each period?

  Proposal for finance dissertation using statistical tools

I am trying to make an overview proposal for a finance dissertation based upon using statistical tools for financial research and risk assessment or portfolio theory.

  Discuss advantages and disadvantages of corporate form

Why does a corporation select to form as a company? What are the steps required to become a corporation? Discuss the advantages and disadvantages of the corporate form of doing business?

  Determine the weighted mean of probability distribution

The potential investment has the given range of possible outcomes and probabilities: 10 percent probability of a -20 percent return, 40 percent probability of a 15 percent return, 40 percent probability of a 25 percent return, Determine the weighted ..

  Compute the amount to be reported as income taxes payable

In 2012, Amirante Corporation had pretax financial income of $168,000 and taxable income of $120,000. The difference is due to the use of different depreciation methods for tax and accounting purposes. The effective tax rate is 40%. Compute the am..

  Which audit program will likely catch leslies mistake

Leslie made a mathematical mistake in computing her tax liability. Which audit program will likely catch Leslie's mistake?

  Find which product makes the largest contribution

Mega Chemical Corporations manufactures Zylex A and a related product called Zylex B. Zylex B, which treade for $15.00 per gallon, is created from a base of Zylex A plus additional ingredients.

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!

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