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What are BCB total costs for the IPO

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Reference no: EM132731923

Problem - Blue Coral Breweries (BCB) is planning an IPO. Its underwriters have said the stock will sell at $20 per share. The direct costs (legal fees, printing, etc.) will be $800,000. The underwriters will charge a 7% spread.

Required -

a. How many shares must BCB sell to net $30 million?

b. If the stock price closes the first day at $22, how much cash has BCB left on the table?

c. What are BCB's total costs (direct, indirect, and underwriting) for the IPO?

Reference no: EM132731923

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