Issuing securities. 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 4.1% commission fee. The SEC has authorized Wayne 4,800,000 shares for this issue. He plans to keep 990,000 shares for himself, hold back an additional 170,000 shares according to the green-shoe provision for Berkman Investment Bank, pay off Venture Capitalists with 500,000 shares, and sell the remaining shares at $15.79 a share. Given the bids at the auction (shown on the table here: E), what is the distribution of the shares and cash flow to Bruce Wayne if Berkman Investment Bank declines its green-shoe allotment? What is the total cash flow to Berkman Investment Bank after the sale? How many shares does Gotham Pension get? shares (Round to the nearest whole number.) Data Table How many shares does Clark Kent get? shares (Round to the nearest whole number.) Click on the following Icon D in order to paste this table's content into a How many shares does Central City get? spreadsheet Bidder Quantity Bid shares (Round to the nearest whole number.) Gotham Pension Fund 1,140,000 495,000 Clark Kent Investors How many shares does Arthur Curry get? Central City Insurance 385,000 Arthur Curry Barry Allen shares (Round to the nearest whole number.) 276,000 244,000 How many shares does Barry Allen get? Total 2,540,000 shares (Round to the nearest whole number.) Print Done What is the total cash flow to Wayne after the sale? shares (Round to the nearest dollar.)
Issuing securities. 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 4.1% commission fee. The SEC has authorized Wayne 4,800,000 shares for this issue. He plans to keep 990,000 shares for himself, hold back an additional 170,000 shares according to the green-shoe provision for Berkman Investment Bank, pay off Venture Capitalists with 500,000 shares, and sell the remaining shares at $15.79 a share. Given the bids at the auction (shown on the table here: E), what is the distribution of the shares and cash flow to Bruce Wayne if Berkman Investment Bank declines its green-shoe allotment? What is the total cash flow to Berkman Investment Bank after the sale? How many shares does Gotham Pension get? shares (Round to the nearest whole number.) Data Table How many shares does Clark Kent get? shares (Round to the nearest whole number.) Click on the following Icon D in order to paste this table's content into a How many shares does Central City get? spreadsheet Bidder Quantity Bid shares (Round to the nearest whole number.) Gotham Pension Fund 1,140,000 495,000 Clark Kent Investors How many shares does Arthur Curry get? Central City Insurance 385,000 Arthur Curry Barry Allen shares (Round to the nearest whole number.) 276,000 244,000 How many shares does Barry Allen get? Total 2,540,000 shares (Round to the nearest whole number.) Print Done What is the total cash flow to Wayne after the sale? shares (Round to the nearest dollar.)
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
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Question #2
Transcribed Image Text:Issuing securities. 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 4.1%
commission fee. The SEC has authorized Wayne 4,800,000 shares for this issue. He plans to keep 990,000 shares for himself, hold back an additional 170,000
shares according to the green-shoe provision for Berkman Investment Bank, pay off Venture Capitalists with 500,000 shares, and sell the remaining shares at $15.79 a
share. Given the bids at the auction (shown on the table here: E), what is the distribution of the shares and cash flow to Bruce Wayne if Berkman Investment Bank
declines its green-shoe allotment? What is the total cash flow to Berkman Investment Bank after the sale?
How many shares does Gotham Pension get?
shares (Round to the nearest whole number.)
Data Table
How many shares does Clark Kent get?
shares (Round to the nearest whole number.)
Click on the following Icon D in order to paste this table's content into a
How many shares does Central City get?
spreadsheet
Bidder
Quantity Bid
shares (Round to the nearest whole number.)
Gotham Pension Fund
1,140,000
Clark Kent Investors
495,000
How many shares does Arthur Curry get?
Central City Insurance
385,000
shares (Round to the nearest whole number.)
Arthur Curry
276,000
Barry Allen
244,000
How many shares does Barry Allen get?
Total
2,540,000
shares (Round to the nearest whole number.)
Print
Done
What is the total cash flow to Wayne after the sale?
$ shares (Round to the nearest dollar.)
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