How much money did metropolitan raise

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Reference no: EM13821362

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: EM13821362

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