Chapter 2 Excel IPO-Short Sell-Margin (1) (1)

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Chapter 2 Excel Calculations f a. Calculate the gross proceeds for Yext’s IPO. b. Calculate Yext's IPO underpricing. c. Calculate the money left on the table for Yext's IPO. a. Calculate the gross proceeds for Yext’s IPO. Offer price per share $11 # of IPO shares issued 10,500,000 Gross Proceeds $115,500,000 b. Calculate Yext's IPO underpricing. Offer price per share $11 Market price per share $13.41 IPO underpricing $21.9 c. Calculate the dollar amount of the underwriting fee for Yext’s IPO. Underwriting discount per share $2.41 # of IPO shares issued 10,500,000 $25,305,000 On April 13, 2017, Yext Inc. completed its IPO on the NYSE. Yext sold 10,500,000 sha share. Yext’s closing stock price on the first day of trading on the secondary market was Dollar amount of underwriter discount
for IPO ares of stock at an offer price of $11 per s $13.41.
Chapter 2 Short Sells and Margin A round lot is 100 shares of stock, assume one lot. For each of the following situations Calculate Profit or Loss (no commissions) Profit/Loss You sell short at $ 20.00 And Repurchase at $ 18 $200 You take a long position at $ 20.00 And then sell $ 18 -$200 You sell short at $ 15.00 And Repurchase at $ 18 -$300 You take a long position at $ 15.00 And then sell $ 18 $300 You sell short at $ 25.00 And Repurchase at $ 18 $700 You take a long position at $ 25.00 And then sell $ 18 -$700 A round lot is 100 shares of stock, assume one lot. For each of the following situations Calculate Profit or Loss (no commissions) Profit/Loss You sell short at $ 30.00 And Repurchase at $ 43 -$1,300 You take a long position at $ 30.00 And then sell $ 25 -$500 You sell short at $ 53.00 And Repurchase at $ 23 $2,800 You take a long position at $ 53.00 And then sell $ 65 $1,200 You sell short at $ 48.00 And Repurchase at $ 41 $700 You take a long position at $ 48.00 And then sell $ 47 -$700 a. She sells short and repurchases the borrowed shares at $295 per share. b. She takes a long position and sells the stock at $295 per share. c. She sells short and repurchases the borrowed shares at $255 per share. d. She takes a long position and sells the stock at $255 per share. Solution a. She sells short and repurchases the borrowed shares at $295 per share. Short sale initiated: Market price per share $270 # of shares sold short 100 Proceeds $27,000 Short sale covered: Market price per share $295 # of shares purchased 100 Cost to investor $29,500 Gain/loss -$2,500 b. She takes a long position and sells the stock at $295 per share. Market price per share $270 # of shares purchased 100 Cost to investor $27,000 Suppose that Tesla stock is currently selling at $270 per share. For each of the following situations (ignoring brokerage commiss the gain or loss that Olivia Crowe realizes if she makes a 100-share transaction. Long purchase initiated:
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