Question: Zimba Technology Corp. recently went public with an initial public offering of 2.9 million shares of stock. The underwriter used a firm commitment offering in

Zimba Technology Corp. recently went public with an initial public offering of 2.9 million shares of stock. The underwriter used a firm commitment offering in which the net proceeds were $7.98 per share and the underwriters spread was 5 percent of the gross proceeds. Zimba also paid legal and other administrative costs of $254,000 for the IPO.

Calculate the gross proceeds per share. (Round your answer to 2 decimal places.)

$7.98 *(1-.05) = 8.40

Gross proceeds

8.40 $ per share

Calculate the total funds received by Zimba from the sale of the 2.9 million shares of stock. (Enter your answer in millions of dollars rounded to 3 decimal places.)

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!

This Mini Practice Set will help you review all the key concepts of the account- ing cycle for a merchandising company along with the integration of payroll. Betty Loeb took over the business now...

I need help with the following questions. I am trying to get the answer but keep getting the wrong one. Thanks HiLo, Inc., doesn't face any taxes and has $68.56 million in assets, currently financed...

Zimba Technology Corp. recently went public with an initial public offering of 1.9 million shares of stock. The underwriter used a firm commitment offering in which the net proceeds were $7.60 per...

Zimba Technology Corp. recently went public with an initial public offering of 2.4 million shares of stock. The underwriter used a firm commitment offering in which the net proceeds were $11.16 per...

Zimba Technology Corp. recently went public with an initial public offering of 3.1 million shares of stock. The underwriter used a firm commitment offering in which the net proceeds was $7.82 per...

Zimba Technology Corp. recently went public with an initial public offering of 2.5 million shares of stock. The underwriter used a firm commitment offering in which the net proceeds were $7.59 per...

Zimba Technology Corp. recently went public with an initial public offering of 3.4 million shares of stock. The underwriter used a firm commitment offering in which the net proceeds were $9.30 per...

Zimba Technology Corp. recently went public with an initial public offering of 3.1 million shares of stock. The underwriter used a firm commitment offering in which the net proceeds were $7.82 per...

Zimba Technology Corp. recently went public with an initial public offering of 3.0 million shares of stock. The underwriter used a firm commitment offering in which the net proceeds were $8.74 per...

Calculating Costs of Issuing Stock Zimba Technology Corp. recently went public with an initial public offering of 2.5 million shares of stock. The underwriter used a firm commitment offering in which...

Zimba Technology Corp. recently went public with an initial public offering of 1.6 million shares of stock. The underwriter used a firm commitment offering in which the net proceeds were $9.66 per...

a. A random sample of 25 observations was drawn from a normal population. The sample mean and sample standard deviation are x = 52 and s = 15. Calculate the test statistic of a test to determine if...

In comparison to perfect competition, a monopoly market structure results in: a. less output, higher price. b. more output, lower price. c. less output, lower price. d. more output, higher price.

Find the curved length of y = l n | s e c x | on the interval - 6 , 6 Find the area of the surface formed by revolving the graph y = x 3 from x = 0 to x = 2 around the x axis.

Find the product of the following. OLIAIH4 O NaBHe, O Kot LiAIHE

Complete the following:

3. Suppose the atmospheric temperature and pressure at the top of a ski run are -5C and 713 mmHg, respectively. At the bottom of the run, the temperature and pressure are 0C and 734 mmHg,...

Weston Company issued and has outstanding 114,000 shares of $10 par-value common stock and 3,000 shares of $50 par-value 25 percent preferred stock. The board of directors votes to distribute $7,500...

Is life possible on other planets other than Earth?

a person who buys an existing enterprise can be described as an entrepeneur

Describe what is meant by collective bargaining and labor relations. page 618

Identify the labor relations goals of society, management, and labor unions. page 620

Explain the legal environments impact on labor relations. page 631