Zimba Technology Corp. recently went public with an initial public offering of 2

Question

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 share and the underwriter’s spread was 7 percent of the gross proceeds. Zimba also paid legal and other administrative costs of $269,000 for the IPO. Calculate the gross proceeds per share. (Round your answer to 2 decimal places.) Gross proceeds $ per share Calculate the total funds received by Zimba from the sale of the 2.4 million shares of stock. (Enter your answer in millions of dollars rounded to 3 decimal places.) Funds received by Zimba $ m

The answer is not 11.16 or 12 thank you

Explanation / Answer

No of Shares Issued(A)            2,400,000 Net Proceeds (B)                     11.16 Adminstrative cost (C )                269,000 Total Fund Received (A*B-C)          26,515,000 or      26.515 Million Gross Proceeds= Underwriter spread+net proceeds Gross proceeds=x x=.07*x+11.16   .93x=11.16 x=11.16/.93 Gross Proceed Per share                     12.00 Total Gross Proceed=12*2400000          28,800,000      28.800 Million

Related Questions

Navigate

• Browse (All)
• Browse Z
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.