On January 20, Sullivan Inc., sold 99 million shares of stock in an SEO. The current market price of Sullivan at the time was $40.50 per share. Of the 99 million shares sold, 66 million shares were primary shares being sold by the company, and the remaining 33 million shares were being sold by the venture capital investors. Assume the underwriter charges 5% of the gross proceeds as an underwriting fee. (which is shared proportionately between primary and secondary shares).
a. How much money did Sullivan raise?
b. How much money did the venture capitalists receive?