The total cost to twitter of the equity issue

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Reference no: EM131871360

Goldman-led Twitter underwriters share $59.2 million in IPO fees. That's 3.25% of the $1.82 billion that Twitter raised in its IPO.

Twitter's 70 million IPO shares rose to $44.90 per share at the close in New York from the initial public offering price of $26.

a. What is your best guess as to the total cost to Twitter of the equity issue?

b. Is the entire cost of the underwriting a source of profit to the underwriters?

Please answer question 2. It has 2 parts. Please show work if necessary or provide explanation if needed.

Reference no: EM131871360

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