Initial Public Offering (IPO), Istar Enterprises Shares Issued 25,000,000 Price per Share, Initially Offered to Public $80.00 Price, Close of First Day $83.00 IPO Underwriter Explicit Costs (percent of money raised) 0.07 Required: Using the information above, calculate: total money raised from the IPO, underwriter costs, net proceeds to the firm, and value of the company at the end of the first day. (Use cells A3 to B6 from the given information to complete this question.) Proceeds and Costs from IPO Dollars Total Money Raised from IPO Underwriter Costs Net Proceeds to Company Value of Company, End of First Day

Initial Public Offering (IPO), Istar Enterprises Shares Issued 25,000,000 Price per Share, Initially Offered to Public $80.00 Price, Close of First Day $83.00 IPO Underwriter Explicit Costs (percent of money raised) 0.07 Required: Using the information above, calculate: total money raised from the IPO, underwriter costs, net proceeds to the firm, and value of the company at the end of the first day. (Use cells A3 to B6 from the given information to complete this question.) Proceeds and Costs from IPO Dollars Total Money Raised from IPO Underwriter Costs Net Proceeds to Company Value of Company, End of First Day

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 12P

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Initial Public Offering (IPO), Istar Enterprises
Shares Issued	25,000,000
Price per Share, Initially Offered to Public	$80.00
Price, Close of First Day	$83.00
IPO Underwriter Explicit Costs (percent of money raised)	0.07

Required:
Using the information above, calculate: total money raised from the IPO, underwriter costs, net proceeds to the firm, and value of the company at the end of the first day.

(Use cells A3 to B6 from the given information to complete this question.)

Proceeds and Costs from IPO	Dollars
Total Money Raised from IPO
Underwriter Costs
Net Proceeds to Company
Value of Company, End of First Day