Bruce Wayne is going public with his new business. Berkman Investment Bank will be his banker and is doing a best efforts sale with a 3.8% commission fee. The SEC has authorized Wayne 4,790,000 shares for this issue. He plans to keep 1,180,000 shares for himself, hold back an additional 240,000 shares according to the green-shoe provision for Berkman Investment Bank, pay off Venture Capitalists with 530,000 shares, and sell the remaining shares at $16.46 a share. Given the bids at the auction distribute the shares to all bidders using a pro-rata share procedure, and assume Berkman Investment Bank takes its green-shoe shares. What is the total cash flow to Wayne after the sale? To Berkman Investment Bank? Bidder Quantity Bid Gotham Pension Fund 1,990,000 Clark Kent Investors 1,250,000 Central City Insurance 610,000 Arthur Curry 440,000 Barry Allen 350,000 Total 4,640,000
Bruce Wayne is going public with his new business. Berkman Investment Bank will be his banker and is doing a best efforts sale with a 3.8% commission fee. The SEC has authorized Wayne 4,790,000 shares for this issue. He plans to keep 1,180,000 shares for himself, hold back an additional 240,000 shares according to the green-shoe provision for Berkman Investment Bank, pay off Venture Capitalists with 530,000 shares, and sell the remaining shares at $16.46 a share. Given the bids at the auction distribute the shares to all bidders using a pro-rata share procedure, and assume Berkman Investment Bank takes its green-shoe shares. What is the total cash flow to Wayne after the sale? To Berkman Investment Bank? Bidder Quantity Bid Gotham Pension Fund 1,990,000 Clark Kent Investors 1,250,000 Central City Insurance 610,000 Arthur Curry 440,000 Barry Allen 350,000 Total 4,640,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Bruce Wayne is going public with his new business. Berkman Investment Bank will be his banker and is doing a best efforts sale with a
3.8%
commission fee. The SEC has authorized Wayne
4,790,000
shares for this issue. He plans to keep
1,180,000
shares for himself, hold back an additional
240,000
shares according to the green-shoe provision for Berkman Investment Bank, pay off Venture Capitalists with
530,000
shares, and sell the remaining shares at
$16.46
a share. Given the bids at the auctiondistribute the shares to all bidders using a pro-rata share procedure, and assume Berkman Investment Bank takes its green-shoe shares. What is the total cash flow to Wayne after the sale? To Berkman Investment Bank?
Bidder Quantity Bid
Gotham Pension Fund 1,990,000
Clark Kent Investors 1,250,000
Central City Insurance 610,000
Arthur Curry 440,000
Barry Allen 350,000
Total 4,640,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education