Question: Please show work and label answers. Amazon.com issued an initial public offering in May of 1997. Prior to its IPO, the following information on shares

Please show work and label answers.

Please show work and label answers. Amazon.com issued an initial public offering

Amazon.com issued an initial public offering in May of 1997. Prior to its IPO, the following information on shares outstanding was listed in the final prospectus: As indicated above, the firm issued 3,000,000 new shares in the IPO. The initial price was $18.00 per share with investment bankers retaining S1.26 of that price as fees. The final first-day closing price was $23.50. What were the total proceeds from this offering (from the new shares issued)? How much of that total went to Amazon (net of fees)? How much went to the investment bankers? What percent went to the investment bankers? Mr. Doerr owned a significant number of shares. What was the market value of these shares at the end of the first day of trading? What was the total market value of Amazon.com following its first day as a publicly held company

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Amazon.com issued an initial public offering in May of 1997. Prior to its IPO, the following information on shares outstanding was listed in the final prospectus: Selected Shareholders Prior to IPO...

MILESTONE V: Chapter 2 2 Deliverables: Amazon.com issued an initial public offering in May of 1 9 9 7 . Prior to its IPO, the following information on shares outstanding was listed in the final...

4.Amazon.com issued an initial public offering in May of 1997. Prior to its IPO, the following information on shares outstanding was listed in the final prospectus: Table 4 Amazon's Prior to IPO...

Quantitative Problems Amazon con 'issued an initial public offering in May of 1997. Prior to its IPO, the following irformation on shares outstanding vaslisted in the final prospectus: In the IPO,...

Amazon.com issued an initial public offering in May 1997. Prior to its IPO, the following information on shares outstanding was listed in the final prospectus: In the IPO, the firm issued 3,000,000...

Amazon.com issued an initial public offering in May 1997. Prior to its IPO, the following information on shares outstanding was listed in the final prospectus: Percentage of Shares Outstanding Name...

1. The capital structure (Wd, Wpfd, and We) of Tucker Company is 40%, 20%, and 40%, and the cost of the bonds, preferred stock, and common stock (Kd, Kpfd, and Ke) is 8%, 5%, and 12%. Calculate the...

Guillaume's son lives with a severe mental illness and Guillaume opens a Registered Disability Savings Plan (RDSP) for him. Guillaume makes contributions of $150 per month. Assuming that the family...

In the context of international finance, how does the concept of Interest Rate Parity ( IRP ) influence the exchange rates between two currencies? What are the key mechanisms through which IRP...

ABC Inc. recently is doing the following financing: (1) The firm's non-callable bonds mature in 20 years, have an 7.00% Yield to Maturity. (2) The companys tax rate is 35%. (3) The risk-free rate is...

Challenges Facing Todays Organizations?

Think of a situation when an organization you belonged to was faced with criticism. Was the organization open to suggestions for change, or was it closed off from such discussions? What was the end...

B How does your opinion of the company policy on dating at work factor into your decision? Does the impact of your coworkers flirtation change your opinion of the policy?