Problem based on planning an ipo


Problem:

ABC is planning an IPO. Its underwriters say the stock the stock will sell at $20. The direct costs will be $800,000. The underwriters will charge a 7% spread.

A - How many shares must be sold to net $30 million?

B- if the stock price closes the first day at $22, how much has ABC left on the table?

C- What are ABC's total costs for IPO?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Problem based on planning an ipo
Reference No:- TGS02054400

Now Priced at $20 (50% Discount)

Recommended (98%)

Rated (4.3/5)