Question: Initial public offering On April 1 8 , 2 0 1 9 , the video conferencing companythe video conferencing company , Zoom completed its IPO
Initial public offeringOn April the video conferencing companythe video conferencing company Zoom completed its IPO on the Nasdaq. Zoom sold shares of Class A stock with vote per share at an offer price of $ and underwriter discount of $ per share. Zooms closing stock price on the first day of trading on the secondary market was $ and Class A shares were outstanding. There were also shares of Class B common stock with votes each outstanding and held privately by ZoomZoom insiders.
a Calculate the total proceeds for Zooms IPO.
b Calculate the percentage underwriter discount.
c Calculate the dollar amount of the underwriting fee for Zooms IPO.
d Calculate the net proceeds for Zooms IPO.
e Calculate Zooms IPO underpricing assuming that market value per share is the same for both classes of stock.
f Calculate Zooms market capitalization assuming that market value per share is the same for both classes of stock.
g What percentage of Zooms total common stockClass A plus Class B do Class A stockholders own after the IPO? What percentage of votes do they control?
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