Question: Can you solve this with explanations please? Need to study for midterms please. 1 . During an IPO, a firm offered 800,000 shares of common

Can you solve this with explanations please? Need to study for midterms please.

Can you solve this with explanations please? Need to study for midterms

1 . During an IPO, a firm offered 800,000 shares of common stock at $30 per share. The closing price on the first day of trading was $39 per share. What amount did the firm lose due to underpricing? 2. A firm plans to net $25,000,000 by selling new shares of common stock through a general cash offering. The offer price will be $35 per share. The underwriter will charge an 8% spread. Answer the following: a. What price will the firm (issuer) receive per share? b. How many shares will need to be issued to raise $25,000,000? c. What is the total flotation cost? 3. A firm is considering a rights offer to raise $60,000,000 at a subscription price of $41.60. It currently has 5 million shares outstanding trading at $55 per share. a. Determine the number of rights needed to buy a new share and the value of each right. b. Show the position of an investor with 694 existing shares after fully exercising her rights

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