Mini case:
Pc Unlimited wishes to go public by issuing 20 million shares of common stock at an offer price 14.63 each. Skrail underwriters will charge 6.5 % underwriting fees.
Question 1. How much will PC Unlimited raise in cash, assuming that all the shares sell?
Question 2. If PC Unlimited wishes to raise $250 million in cash, what proportion of its initial offering must be sold?
Question 3. Assume purchased shares at the IPO price and then sold after one year for 3.42 each. What is your after tax return if you are in the 15% bracket for capital gains?