Match Group went public in November 2018. The company sold 19,833,333 shares at $15.2 per share. The underwriting spread was $2.26 a share, and the direct expenses were $0.37 a share.   a. What was the percentage underwriting spread? (Enter your answer as a percent rounded to 1 decimal place.)   b. How much did the company raise after all expenses? (Enter your answer in dollars not millions. Round your answer to the nearest dollar.)   c. On its first day of trading the stock closed at $19.54. Calculate the total dollar cost of underpricing. (Enter your answer in dollars not millions. Round your answer to the nearest dollar.)

Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 28E
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Match Group went public in November 2018. The company sold 19,833,333 shares at $15.2 per share. The underwriting spread was $2.26 a share, and the direct expenses were $0.37 a share.

 

a. What was the percentage underwriting spread? (Enter your answer as a percent rounded to 1 decimal place.)

 

b. How much did the company raise after all expenses? (Enter your answer in dollars not millions. Round your answer to the nearest dollar.)

 

c. On its first day of trading the stock closed at $19.54. Calculate the total dollar cost of underpricing. (Enter your answer in dollars not millions. Round your answer to the nearest dollar.)

 

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