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On January 20, Whalen Inc., sold 9 million shares of stock in an SEO. The market price of Whalen at the time was $41.25 per share. Of the 9 million shares sold, 4 million shares were primary shares being sold by the company, and the remaining 5 million shares were being sold by the venture capital investors. Assume the underwriter charges 5.2% of the gross proceeds as an underwriting fee. How much money did Whalen raise? $156.42 million $182.35 million $122.46 million $174.29 million

On January 20, Whalen Inc., sold 9 million shares of stock in an SEO. The market price of Whalen at the time was $41.25 per share. Of the 9 million shares sold, 4 million shares were primary shares being sold by the company, and the remaining 5 million shares were being sold by the venture capital investors. Assume the underwriter charges 5.2% of the gross proceeds as an underwriting fee. How much money did Whalen raise? $156.42 million $182.35 million $122.46 million $174.29 million

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 14P
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On January 20, Whalen Inc., sold 9 million shares of stock in an SEO. The market price of Whalen at the time was $41.25 per share. Of the 9 million shares sold, 4 million shares were primary shares being sold by the company, and the remaining 5 million shares were being sold by the venture capital investors. Assume the underwriter charges 5.2% of the gross proceeds as an underwriting fee. How much money did Whalen raise? $156.42 million $182.35 million $122.46 million $174.29 million
Transcribed Image Text:On January 20, Whalen Inc., sold 9 million shares of stock in an SEO. The market price of Whalen at the time was $41.25 per share. Of the 9 million shares sold, 4 million shares were primary shares being sold by the company, and the remaining 5 million shares were being sold by the venture capital investors. Assume the underwriter charges 5.2% of the gross proceeds as an underwriting fee. How much money did Whalen raise? $156.42 million $182.35 million $122.46 million $174.29 million
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