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lara31 [8.8K]
3 years ago
13

A mid-sized firm plans to issue 10 million shares during an IPO. The underwriter plans to sell shares at $24.45; however, many i

nvestors believe the company should be valued at $34.25 per share. If the underwriter charges a $1.1 million fee to undertake the IPO, how much will the firm raise in the IPO
Business
1 answer:
HACTEHA [7]3 years ago
6 0

Answer:

The answer is "\$243,400,000".

Explanation:

The medium-sized company proposes to issue 10 million IPO shares.

Its Contractor intends to purchase $24.45; this implies cash flows from

\to 10,000,000 \times 24.45= \$244,500,000

When the contractor pays an IPO cost of million, the company shall

In the IPO this would raise  

\to \$186,000,000 - \$1,100,000 = \$243,400,000

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