Solved

Bavarian Brewhouse IPO Bavarian Brewhouse Is Planning an IPO. Under the Terms of the Terms

Question 13

Multiple Choice

Bavarian Brewhouse IPO
Bavarian Brewhouse is planning an IPO. Under the terms of the IPO, Bavarian Brewhouse will issue 8 million shares at an offer price of $25 per share. The underwriter charges an 9% underwriting fee and direct costs are estimated to be $7 million. The stock is expected to trade at $30 at the end of the first trading day.

-What is the total amount of funds raised by Bavarian Brew through the IPO?


A) $175 million
B) $182 million
C) $200 million
D) $150 million

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents