How much money did metropolitan raise

Assignment Help Corporate Finance
Reference no: EM13197432

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 primary shares being sold by the company, and the remaining 3 million shares were being sold by the venture capital investors. Assume the underwriter charges 5% of the gross proceeds as an underwriting fee.

a. How much money did Metropolitan raise?

b. How much money did the venture capitalists receive?

c. If the stock price dropped 3% on announcement of the SEO and the new shares were sold at that price, how much money would Metropolitan receive?

Reference no: EM13197432

Questions Cloud

Difference of wacc based on market value : What is the difference of WACC based on market value weights and book weights - Please show formulas.A balance sheet shows a total of noncallable $45 million.
What is the marginal cost per bicycle : What is the marginal cost per bicycle?
What is a 95 percent confidence interval for the mean : Five years ago, an automobile manufacturer started offering an extended warranty to buyers of its sport-utility vehicle. The extended warranty covered defects occurring after the initial three-year warranty expired.
Compute the price elasticity of demand : Suppose that as the price of Y falls from $3.00 to $1.00 the quantity of Y demanded increases from 10 to 18.Compute the price elasticity of demand.
How much money did metropolitan raise : How much money did Metropolitan raise and how much money did the venture capitalists receive?
Write a statement about the confidence level : It randomly samples 100 of its alumni. The mean annual income was $59,000 with a standard deviation of $1,600. Find a 95% confidence interval for the true mean annual income of the nursing school alumni. Write a statement about the confidence leve..
Is supply cahin management for real or is just another fad : 1-is supply cahin management for real or it is just another fad does the answer to this question depend on how company pursues SCM2-what efforts would you make to assure that managers at Med-Tec didnt treat SCM as just another flavour of the month..
How many top three outcomes are there : The "Top Three" at a racetrack consists of picking the correct order of the first three horses in a race. If there are 10 horses in a particular race, how many "Top Three" outcomes are there?
Prepare financial statements from adjusted trial balance : Transfer these accounts and balances to a spreadsheet worksheet and prepare an Income statement, a Classified Balance Sheet, and a Statement of Retained Earnings all in good form using proper headings for each statement.

Reviews

Write a Review

Corporate Finance Questions & Answers

  Purpose a statement of cash flows

Purpose a statement of cash flows for the year ended December 31, 2012 and what does this statement tell you that an income statement does not?

  Find the lowest cost alternative

A healthcare company's investment of $1,000 in a piece of equipment will decrease labor costs by $400 per year for the next 5 years. 30% of all patients seen by the firm have a third-party payer arrangement that pays for capital costs on a retrospect..

  Evaluate share of the common stock

Which do you think will have the higher price (and why), a share of the preferred stock or a share of the common stock?

  What is the static npv and what is the strategic npv

If the cost of the capital is 15% by continuous compounding, the risk-free rate is 5% and the volatility is 0.3. What is the Static NPV and what is the Strategic NPV?

  What is the most you would be willing to pay per share

If you can earn 13% on similar-risk investments, what is the most you would be willing to pay per share and if you can earn only 10% on similar-risk investments, what is the most you would be willing to pay per share?

  Combining revenue and expense budget

Preparation of operating budget of hospital by combining revenue and expense budget - Combine the revenue (Section A) and expense budgets to present an operating budget for the coming year.

  Analyze the structure of the variable rate debt

How useful are synthetic fixed-rate debt instruments in your opinion? Why would anybody want to construct such instruments? What are their advantages and disadvantages?

  Analysis of financial statement considering ratio analysis

Analysis of financial statement considering ratio analysis and giving recommendation - Submit a two-page 600 to 700 word written report explaining how you would analyze the financial performance of a publicly traded corporation

  Dispose of toxic elements from recycled computers

Redo your analysis for a scenario in which CT incurs a cost of $0.20 per unit to dispose of the toxic elements from the recycled computers. What is your recommendation under these circumstances?

  Questions based on balance sheet data

Multiple Choice questions based on balance sheet data and An accounting time period that is one year in length is called and One of the accounting concepts upon which adjustments for prepayments and accruals.

  Nominal cost of trade credit to the customer

Determine the nominal cost of trade credit to customer who pays on due date? Set calculator to 4 decimal places to get percentage (%) answer to 2 decimal places.

  Surplus remaining after repaying the equity share capital

Under the Articles of Association of the Company, the preference shareholders have the right to receive one-third of the surplus remaining after repaying the equity share capital.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd