Question: Problem 3 - 1 4 ( Algo ) DRK , Incorporated, has just sold 8 0 , 0 0 0 shares in an initial public

Problem 3-14(Algo)
DRK, Incorporated, has just sold 80,000 shares in an initial public offering. The underwriter's explicit fees wer
$48,000. The offering price for the shares was $64, but immediately upon issue, the share price jumped to
$68.00.
Required:
a. What is the total cost to DRK of the equity issue?
Problem 3-14(Algo) DRK, Incorporated, has just sold 80,000 shares in an

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!

Q:

Saved Help Se Problem 3-14 DRK, Inc., has just sold 60,000 shares in an initial public offering. The underwriter's explicit fees were $36,000. The offering price for the shares was $68, but...

Q:

1. DRK, Inc., has just sold 100,000 shares in an initial public offering. The underwriter's explicit fees were $60,000. The offering price for the shares was $40, but immediately upon issue, the...

Q:

2 DRK, Inc, has just sold 230.000 shares in an initial public offering. The underwriter's explicit fees were $138,000. The offering price for the shares was $34, but immediately upon issue, the share...

Q:

1 . DRK , Incorporated, has just sold 7 0 , 0 0 0 shares in an initial public offering. The underwriter's explicit fees were \ ( \ $ 4 2 , 0 0 0 \ ) . The offering price for the shares was \ ( \ $ 6...

Q:

1. NewCorp., has just sold 180,000 shares in an initial public offering. The underwriters explicit fees were $108,000. The offering price for the shares was $46, but immediately upon issue, the share...

Q:

Question 1 A market order has: Price uncertainty but not execution uncertainty. Both price and execution uncertainty. Execution uncertainty but not price uncertainty. Briefly explain your choice....

Q:

Question 1 : The biggest lesson that was learnt from financial crisis of 2008 2009 is that information and transparency are some of the preconditions for well-functioning markets. - Why is that the...

Q:

EXERCISE QUESTIONS 1) Barnegat Light sold 290,000 shares in an initial public offering. The underwriter's explicit fees were $88,000. The offering price for the shares was $58, but immediately upon...

Q:

1. (Points: 1) With respect to a corporation, select the statement that is correct. a. Its organization requires an approved charter which is governed by state law. b. Ownership rights to the...

Q:

1. (Points: 1) With respect to a corporation, select the statement that is correct. a. Its organization requires an approved charter which is governed by state law. b. Ownership rights to the...

Q:

What is a supply chain? Describe the potential impacts of a loosely coupled system on the cooperative culture of the organisation.

Q:

In an effort to reduce health care costs, many companies are encouraging their employees to walk more. According to the Medicine & Science in Sports & Exercise Journal, Americans take an average of...

Q:

P15.1 (LO 1, 2, 3) Groupwork (Entries for Various Dilutive Securities) The equity section of Martino AG at the beginning of the current year appears below. Share capitalordinary, 10 par value,...

Q:

Bed & Bath, a retailing company, has two departmentsHardware and Linens. The companys most recent monthly contribution format income statement follows: Total Department Hardware Linens Sales $...