Answer:
(a) $143,220,000
(b) $9,452,520
(c) $ 133,767,480
Explanation:
IPO- stands for initial public offering. It occurs when a private company wants to sell its shares to the public by listing on an exchange platform
Primary market- initial market where shares of a private company are sold to the public for the first time
Secondary market- this is a market where investors can buy and sell these shares based on perceived information so as to make profits
Underwriter- a third party which in this case, sells the shares on behalf of the private company during an IPO
Underwriting discount- cost of the underwriting service described above
Given the above definitions, the total proceeds for Netshoes' IPO (price * quantity of shares sold during IPO) is $143,220,000. The commission paid (for costs incurred to sell shares) by Netshoes to the underwriters is $9,452,520 and the net proceeds for Netshoes' IPO (total proceeds less commission) is $ 133,767,480.
