Pearson inc is offering 40000 shares in an initial public


Pearson, Inc. is offering 40,000 shares in an initial public offering. The underwriters have agreed upon a best efforts offering with an offer price of $25 and a 7 percent spread. The underwriters were able to sell 28,500 shares to the general public. The stock opened at a price of $28 a share on its first day of trading. How much did Pearson, Inc. receive from this offering?

a) $1,120,000

b) $930,000

c) $742,140

d) $712,500

e) $662,625

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Financial Management: Pearson inc is offering 40000 shares in an initial public
Reference No:- TGS01252543

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