An online medical advice company just completed an IPO with an investment bank on a firm-commitment basis.

Question:

An online medical advice company just completed an IPO with an investment bank on a firm-commitment basis. The firm issued 5 million shares of common stock, and the underwriting fees were $4.20 per share. The offering price was $26 per share.
a. What were the total proceeds from the common-stock sale?
b. How much money did the company receive?
c. How much money did the investment bank make?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

Question Posted: