In a recent IPO, a social network company issued 4,000,000 new shares. The initial price to the public was £22.00 per share. The final first-day closing price was £52.37. If the investment bankers retained £1.45 per share as fees, what was the net proceeds to the social network firm and its market capitalisation? Select one: O a. Net proceeds: £93,800,000; Market capitalisation: £203,680,000 O b. Net proceeds: £88,000,000; Market capitalisation: £88,000,000 O c. Net proceeds: £82,200,000; Market capitalisation: £209,480,000 O d. Net proceeds: £83,200,000; Market capitalisation: £219,480,000
In a recent IPO, a social network company issued 4,000,000 new shares. The initial price to the public was £22.00 per share. The final first-day closing price was £52.37. If the investment bankers retained £1.45 per share as fees, what was the net proceeds to the social network firm and its market capitalisation? Select one: O a. Net proceeds: £93,800,000; Market capitalisation: £203,680,000 O b. Net proceeds: £88,000,000; Market capitalisation: £88,000,000 O c. Net proceeds: £82,200,000; Market capitalisation: £209,480,000 O d. Net proceeds: £83,200,000; Market capitalisation: £219,480,000
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 12P
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning