Ask Question
24 September, 11:20

Nelson Paints recently went public by offering 50,000 shares of common stock to the public. The underwriters provided their services in a best efforts underwriting. The offering price was set at $17.50 a share and the gross spread was $2.30. After completing their sales efforts, the underwriters determined that they sold a total of 47,500 shares. How much cash did the company receive from its IPO?

+1
Answers (1)
  1. 24 September, 11:25
    0
    cash received $722,000

    Explanation:

    amount received per share:

    17.5 per share

    - 2.3 gross spread

    15.2 per share

    47,500 shares x $15.2 per share = 722,000 total proceeds

    Gross spread: will be the fee of the inderwriters forthe IPO it decrease the amount collected from the issuing company.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Nelson Paints recently went public by offering 50,000 shares of common stock to the public. The underwriters provided their services in a ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers