please help me answer the following Initial Public Offering. A biotechnology company, Keros Therapeutics, completed its IPO on April 8, 2020, and listed on the Nasdaq. Keros sold 6,000,000 shares of stock to primary market investors at an IPO offer price of$15.32, with an underwriting discount of 6.1%. Secondary market investors, however, were paying $21.77 per share for Keros' 19,189,391 shares of stock outstanding.a. Calculate the total proceeds for Keros' IPO.b. Calculate the dollar amount of the underwriting fee for Keros' IPO.c. Calculate the net proceeds for Keros' IPO.d. Calculate market capitalization for Keros' outstanding stock.e. Calculate IPO underpricing for Keros' IPO.f. Explain the IPO underpricing for Keros.a. The total proceeds for Keros' IPO is $. (Round to the nearest dollar.)b. The dollar amount of the underwriting fee for Keros' IPO is $ | (Round to the nearest dollar.)c. The net proceeds for Keros' IPO is S. (Round to the nearest dollar.)d. Keros' market capitalization is S (Round to the nearest dollar.)e. Keros' IPO underpricing is %. (Round to two decimal places.)f. Explain the IPO underpricing for Keros. (Select the best answer below.) d. Keros' market capitalization is S (Round to the nearest dollar.)e. Keros' IPO underpricing is %. (Round to two decimal places.)f. Explain the IPO underpricing for Keros. (Select the best answer below.)O A. Negative underpricing indicates secondary market investors are willing to pay more for existing shares than primary market investors were for new shares.O B. Negative underpricing indicates secondary market investors are not willing to pay as much for new shares as primary market investors were for existing shares.OC. Negative underpricing indicates secondary market investors are not willing to pay as much for existing shares as primary market investors were for new shares.O D. Negative underpricing indicates primary market investors are not willing to pay as much for existing shares as secondary market investors were for new shares.

Underpricing refers to the process when a company lists its IPO comparatively at a lower price than…

roceeds for Keros' IPO. amount of the underwriting fee for Keros' IPO. eceeds for Keros' IPO. pitalization for Keros' outstanding stock. pricing for Keros' IPO. erpricing for Keros. or Keros' IPO is $ (Round to the nearest dollar.)

roceeds for Keros' IPO. amount of the underwriting fee for Keros' IPO. eceeds for Keros' IPO. pitalization for Keros' outstanding stock. pricing for Keros' IPO. erpricing for Keros. or Keros' IPO is $ (Round to the nearest dollar.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 12P

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

please help me answer the following

Initial Public Offering. A biotechnology company, Keros Therapeutics, completed its IPO on April 8, 2020, and listed on the Nasdaq. Keros sold 6,000,000 shares of stock to primary market investors at an IPO offer price of
$15.32, with an underwriting discount of 6.1%. Secondary market investors, however, were paying $21.77 per share for Keros' 19,189,391 shares of stock outstanding.
a. Calculate the total proceeds for Keros' IPO.
b. Calculate the dollar amount of the underwriting fee for Keros' IPO.
c. Calculate the net proceeds for Keros' IPO.
d. Calculate market capitalization for Keros' outstanding stock.
e. Calculate IPO underpricing for Keros' IPO.
f. Explain the IPO underpricing for Keros.
a. The total proceeds for Keros' IPO is $. (Round to the nearest dollar.)
b. The dollar amount of the underwriting fee for Keros' IPO is $ | (Round to the nearest dollar.)
c. The net proceeds for Keros' IPO is S. (Round to the nearest dollar.)
d. Keros' market capitalization is S (Round to the nearest dollar.)
e. Keros' IPO underpricing is %. (Round to two decimal places.)
f. Explain the IPO underpricing for Keros. (Select the best answer below.)

d. Keros' market capitalization is S (Round to the nearest dollar.)
e. Keros' IPO underpricing is %. (Round to two decimal places.)
f. Explain the IPO underpricing for Keros. (Select the best answer below.)
O A. Negative underpricing indicates secondary market investors are willing to pay more for existing shares than primary market investors were for new shares.
O B. Negative underpricing indicates secondary market investors are not willing to pay as much for new shares as primary market investors were for existing shares.
OC. Negative underpricing indicates secondary market investors are not willing to pay as much for existing shares as primary market investors were for new shares.
O D. Negative underpricing indicates primary market investors are not willing to pay as much for existing shares as secondary market investors were for new shares.

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