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.

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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