Beedles Inc. needed to raise $14 million in an IPO and chose Security Brokers Inc. to underwrite the offering. The agreement stated that Security Brokers would sell 3 million shares to the public and provide $14 million in net proceeds to Beedles. The out-of-pocket expenses incurred by Security Brokers in the design and distribution of the issue were $460,000. What profit or loss would Security Brokers incur if the issue were sold to the public at the following average price? Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answers to the nearest dollar. Loss should be indicated by a minus sign. $5.25 per share? $ $6 per share? $ $3.5 per share? $
Beedles Inc. needed to raise $14 million in an IPO and chose Security Brokers Inc. to underwrite the offering. The agreement stated that Security Brokers would sell 3 million shares to the public and provide $14 million in net proceeds to Beedles. The out-of-pocket expenses incurred by Security Brokers in the design and distribution of the issue were $460,000. What profit or loss would Security Brokers incur if the issue were sold to the public at the following average price? Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answers to the nearest dollar. Loss should be indicated by a minus sign. $5.25 per share? $ $6 per share? $ $3.5 per share? $
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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Question
Beedles Inc. needed to raise $14 million in an IPO and
chose Security Brokers Inc. to underwrite the offering
The agreement stated that Security Brokers would sell 3
million shares to the public and provide $14 million
net proceeds to Beedles. The out- of- pocket expenses
incurred by Security Brokers in the design and
distribution of the issue were $460,000 . What profit Or
loss would Security Brokers incur if the issue were sold
to the public at the following average price? Write out
your answer completely. For example, 5 million should
be entered as 5, 000, 000. Round your answers to the
hearest dollar. Loss should be indicated by a minus sign.
$5.25 per share? $ $6 per share? $ $3.5 per share? $
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