Question: Bruce Wayne is going public with his new business Berkman

Bruce Wayne is going public with his new business. Berkman Investment Bank will be his banker and is doing a best-efforts sale with a 4% commission fee. Wayne has been authorized 5,000,000 shares for this issue. He plans on keeping 1,000,000 shares for himself, holding back an additional 200,000 shares for a green-shoe provision for Berkman Bank, paying off Venture Capitalists with 500,000 shares, and selling the remaining shares at $16 a share. Given the following bids at the auction, distribute the shares to all bidders using a pro-rata share procedure and assume Berkman Bankers takes its green-shoe provision. What is the total cash flow to Wayne after the sale? To Berkman Bankers?
Bidder ........... Quantity Bid
Gotham Pension Fund ...... 2,000,000
Clark Kent Investors ...... 1,100,000
Central City Insurance ....... 600,000
Arthur Curry ........... 400,000
Barry Allen ............ 300,000

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  • CreatedMay 08, 2014
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