Solved

NARRBEGIN: Sea Grove Beach Corp

Question 55

Multiple Choice

NARRBEGIN: Sea Grove Beach Corp.
Sea Grove Beach Corporation
Sea Grove Beach Corporation is executing an initial public offering with the following characteristics.The company will sell 12 million shares at an offer price of $20 per share,the underwriter will charge a 7 percent underwriting fee,and the shares are expected to sell for $27.50 per share by the end of the first day's trading.Assuming this IPO is executed as expected.
-What is the total cost (underwriting fee and underpricing) of this issue to Sea Grove Beach Corporation?


A) $6.30 million
B) $16.80 million
C) $106.80 million
D) $125.00 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