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 $1.90 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 receive in fees?
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1119371403
4th edition
Authors: Robert Parrino, David S. Kidwell, Thomas Bates
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