How much money did the venture capitalists receive

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Question - On January 20, Whalen Inc., sold 9 million shares of stock in an SEO. The market price of Whalen at the time was $40.00 per share. Of the 9 million shares sold, 5 million shares were primary shares being sold by the company, and the remaining 4 million shares were being sold by the venture capital investors. Assume the underwriter charges 4.7% of the gross proceeds as an underwriting fee.

Required -

a. How much money did Whalen raise?  

b. How much money did the venture capitalists receive?

c. If the stock price dropped 2.4% on the announcement of the SEO and the new shares were sold at that price, how much money would Whalen receive?

Reference no: EM132848596

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