You are the lead broker for the syndicate that will be issuing $45,000,000 in a new...

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You are the lead broker for the syndicate that will be issuing $45,000,000 in a new equity issue for the Rocket Science Corporation. The issue will be a firm commitment offering and the entire issue was purchased for a discounted price. The new equity issue will be sold using a Dutch auction. Calculate the selling price and the number of shares each successful bidder will receive. Show your work! Investor Shares Bid Price 1 30,000 95.00 2 50,000 96.25 3 75,000 94.50 4 100,000 100.00 96.50 150,000 100.00 97.75 98.00 5 100,000 6 7 150,000 8 200,000 Proceeds 2,850,000.00 7,700,000.00 14,647,500.00 25,500,000.00 34,257,500.00 50,500,000.00 64,026,250.00 83,790,000.00 You are the lead broker for the syndicate that will be issuing $45,000,000 in a new equity issue for the Rocket Science Corporation. The issue will be a firm commitment offering and the entire issue was purchased for a discounted price. The new equity issue will be sold using a Dutch auction. Calculate the selling price and the number of shares each successful bidder will receive. Show your work! Investor Shares Bid Price 1 30,000 95.00 2 50,000 96.25 3 75,000 94.50 4 100,000 100.00 96.50 150,000 100.00 97.75 98.00 5 100,000 6 7 150,000 8 200,000 Proceeds 2,850,000.00 7,700,000.00 14,647,500.00 25,500,000.00 34,257,500.00 50,500,000.00 64,026,250.00 83,790,000.00

Answer rating: 100% (QA)

Total proceeds 245475750 Number of shares 45000000 Selling price per share 245475750 ... View the full answer