On January? 20,MetropolitanMetropolitan Inc., sold 8 million shares of stock in an SEO. The market price of MetropolitanMetropolitan at the time was $41.25 per share. Of the 8 million shares? sold,5 million shares were primary shares being sold by the company, and the remaining 3 million shares were being sold by the venture capital investors. Assume the underwriter charges 5.5% of the gross proceeds as an underwriting fee.
a. How much money did Metropolitan Metropolitan raise ?
b. How much money did the venture capitalists receive?
c. If the stock price dropped 3.2% on the announcement of the SEO and the new shares were sold at that price, how much money would Metropolitan Metropolitan receive?