Question: Problem 13.23 Bellex Technologies agreed to complete its IPO on a best-effort basis. The companys investment bank demanded a spread of 10 percent of the

Problem 13.23

Bellex Technologies agreed to complete its IPO on a best-effort basis. The companys investment bank demanded a spread of 10 percent of the offer price, which was set at $28.70 per share. Three million shares were issued; however, the bank was overly optimistic and eventually was able to sell all of the stock for only $24.10 per share. What were the proceeds for the issuer and the underwriter?

Proceeds to issuer		$
Proceeds to underwriting		$

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