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

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

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 9MC

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