How much money did the venture capitalists receive

Assignment Help Financial Management

Reference no: EM132068647

On January? 20,MetropolitanMetropolitan Inc., sold 8 million shares of stock in an SEO. The market price of MetropolitanMetropolitan at the time was $41.25 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 5.5% of the gross proceeds as an underwriting fee.

a. How much money did Metropolitan Metropolitan raise ?

b. How much money did the venture capitalists receive?

c. If the stock price dropped 3.2% on the announcement of the SEO and the new shares were sold at that price, how much money would Metropolitan Metropolitan receive?

Reference no: EM132068647

Questions Cloud

By how much did the company retained earnings increase : By how much did the company’s retained earnings increase? With 100 million shares outstanding and a stock price of $90, what was the dividend yield?

What will the value of the whole firm be after investment : How many shares must the venture capitalist receive to end up with 33% of the company? What will the value of the whole firm be after this investment?

What is the expected rate of return on the market : You own a stock that has an expected return of 15.72 percent and a beta of 1.33. What is the expected rate of return on the market?

The depreciation expense is referred to as the depreciation : The amount by which a firm's tax bill is reduced as a result of the depreciation expense is referred to as the depreciation:

How much money did the venture capitalists receive : How much money did Metropolitan Metropolitan raise ? How much money did the venture capitalists receive?

What will be your percentage ownership of the firm after IPO : How much will the firm raise? What will be your percentage ownership of the firm after the IPO?

Hedge their risk of adverse currency fluctuation : An american company is commencing work in England and wants to hedge their risk of an adverse currency fluctuation.

Explain what is working capital and sunk cost : Explain what is working capital and sunk cost? What is IRR and why it may not be the best method to evaluate a project?

Flotation costs on the old issue are being amortized : Flotation costs on the old issue are being amortized on a straight line basis over the life of the bonds.

User Account

All Pages