On January 20, Metropolitan, Inc., sold 8 million shares of stock in an SEO. The current market
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On January 20, Metropolitan, Inc., sold 8 million shares of stock in an SEO. The current market price of Metropolitan at the time was $42.50 per share. Of the 8 million shares sold, 5 million shares were primary shares being sold by the company, and the remaining 3 million shares were being sold by the venture capital investors. Assume the underwriter charges 5% of the gross proceeds as an underwriting fee (which is shared proportionately between primary and secondary shares).
a. How much money did Metropolitan raise?
b. How much money did the venture capitalists receive?
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Related Book For
Corporate Finance The Core
ISBN: 9781292158334
4th Global Edition
Authors: Jonathan Berk, Peter DeMarzo
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