Q: Margoles Publishing recently completed its IPO. The stock was offered at
Margoles Publishing recently completed its IPO. The stock was offered at a price of $14 per share. On the first day of trading, the stock closed at $19 per share. a. What was the initial return on Mar...
See AnswerQ: If Margoles Publishing from Problem 11 paid an underwriting spread of 7
If Margoles Publishing from Problem 11 paid an underwriting spread of 7% for its IPO and sold 10 million shares, what was the total cost (exclusive of underpricing) to it of going public?
See AnswerQ: In the HomeNet example from the chapter, its receivables are 15
In the HomeNet example from the chapter, its receivables are 15% of sales and its payables are 15% of COGS. Forecast the required investment in net working capital for HomeNet assuming that sales and...
See AnswerQ: Chen Brothers, Inc., sold 4 million shares in its IPO
Chen Brothers, Inc., sold 4 million shares in its IPO, at a price of $18.50 per share. Management negotiated a fee (the underwriting spread) of 7% on this transaction. What was the dollar cost of this...
See AnswerQ: Your firm is selling 3 million shares in an IPO. You
Your firm is selling 3 million shares in an IPO. You are targeting an offer price of $17.25 per share. Your underwriters have proposed a spread of 7%, but you would like to lower it to 5%. However, yo...
See AnswerQ: The firm you founded currently has 12 million shares, of which
The firm you founded currently has 12 million shares, of which you own 7 million. You are considering an IPO where you would sell 2 million shares for $20 each. If all of the shares sold are primary s...
See AnswerQ: The firm you founded currently has 12 million shares, of which
The firm you founded currently has 12 million shares, of which you own 7 million. You are considering an IPO where you would sell 2 million shares for $20 each. If all of the shares sold are from your...
See AnswerQ: The firm you founded currently has 12 million shares, of which
The firm you founded currently has 12 million shares, of which you own 7 million. You are considering an IPO where you would sell 2 million shares for $20 each. What is the maximum number of secondary...
See AnswerQ: On January 20, Metropolitan, Inc., sold 8 million shares
On January 20, Metropolitan, Inc., sold 8 million shares of stock in an SEO. The market price of Metropolitan at the time was $42.50 per share. Of the 8 million shares sold, 5 million shares were prim...
See AnswerQ: Foster Enterprises’ stock is trading for $50 per share and there
Foster Enterprises’ stock is trading for $50 per share and there are currently 10 million shares outstanding. It would like to raise $100 million. If its underwriter charges 5% of gross proceeds, a. H...
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