Question: Dotcom, Inc. went public in 2 0 0 1 . The offer price was $ 6 0 . Furthermore, the first quoted price amounted to

Dotcom, Inc. went public in 2001. The offer price was $60. Furthermore, the first quoted price amounted to $63.5. Overall, 833,000 shares were sold, of which 93,000 were sold by original shareholders. None of the original shareholders bought shares in the IPO. The total number of shares outstanding after the capital increase and IPO amounted to 2,000,000.
a) How much money did Dotcom Inc. leave on the table?
b) The direct costs of the IPO had been estimated not to surpass 3.5 million $ in the prospectus. What are the total costs of going public as a percentage of capital inflows to the firm?
c) One year after the IPO, Dotcom needs to issue 500,000 new shares at a price of $35 in order to finance future investments. The current stock price right before the SEO is $75. What is the rights ratio ("Bezugsverhltnis"), Dotcom's stock price right after the SEO, and the value of one subscription right?

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