Response to the following problem:
On December 15, 2004, Las Vegas Sands Corp., owner of the Venetian Hotel in Las Vegas, conducted an initial public offering of 23.8 million shares of $0.001 par value common stock at a price of $29 per share. The price of the common stock rose to $46.56 by the end of the day's trading on the New York Stock Exchange. Goldman Sachs Group, Inc., and Citicorp were the lead underwriters of the initial public offering.
a. Journalize the entry for the initial public offering, assuming an underwriting fee of 0.5% of the IPO proceeds to be paid to the underwriters.
b. What services do Goldman Sachs Group, Inc., and Citigroup provide in the IPO?
c. Describe the primary and secondary markets in this transaction.
d. Who received the increase in share price on the first day of trading, and what was their percentage return?