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igomit [66]
3 years ago
10

Turbo Technology Corp. recently went public with an initial public offering of 3.03 million shares of stock. The underwriter use

d a firm commitment offering in which the net proceeds was $7.65 per share and the underwriter's spread was 7 percent of the gross proceeds. Turbo also paid legal and other administrative costs of $230,000 for the IPO. Calculate the gross proceeds per share received by Turbo from the sale of the 3.03 million shares of stock.(A) $7.73(B) $7.65(C) $8.23(D) $8.31
Business
1 answer:
Leokris [45]3 years ago
7 0

Answer:

$8.23 per share

Explanation:

Total funds received by Turbo = (3.03 million shares x $ 7.65 per share) - $230,000

= $23,179,500 - $230,000 = $22,949,500

Gross Proceeds = Net Proceeds + Underwriter's Spread  

Gross Proceeds = (Gross Proceeds * 0.07) + $7.65 per share

(Gross Proceeds – 0.07 Gross Proceeds) = $7.65 per share

Factorize gross proceeds mathematically to get

Gross Proceeds (1-0.07) = $7.65 per share

Gross Proceeds (0.93) = $7.65 per share

Gross Proceeds = \frac{7.65}{0.93}

Gross Proceeds = $8.23 per share

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Suppose changes in autonomous consumption affect investment while changes in autonomous government spending do not. in this case
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The correct answer is letter "C": international.

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James borrows $300,000 for a home from Bank A. Bank A resells the right to collect on that loan to Bank B. Bank B securitizes th
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Therefore The cost per equivalent unit for conversion costs for September is closest to $ 5.34

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