Barnegat Light sold 150,000 shares in an initial public offering. The underwriter's explicit fees were $ 60,000. The offering price for the shares was $30, but immediately upon issue, the share price jumped to $38. What is the best estimate of the total cost to Barnegat Light of the equity issue?
Barnegat Light sold 150,000 shares in an initial public offering. The underwriter's explicit fees were $ 60,000. The offering price for the shares was $30, but immediately upon issue, the share price jumped to $38. What is the best estimate of the total cost to Barnegat Light of the equity issue?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation
Section: Chapter Questions
Problem 2P
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Barnegat Light sold 150,000 shares in an initial public offering. The underwriter's explicit fees were $ 60,000. The offering price for the shares was $30, but immediately upon issue, the share price jumped to $38. What is the best estimate of the total cost to Barnegat Light of the equity issue?
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