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 3.8% commission fee. The SEC has authorized Wayne 5,010,000 shares for this issue. He plans to keep 1,250,000 shares for himself, hold back an additional 210,000 shares according to the green-shoe provision for Berkman Investment Bank, pay off Venture Capitalists with 460,000 shares, and sell the remaining shares at $16.21 a share. Given the bids at the auction (shown on the table here: 9), distribute the shares to all bidders using a pro-rata share procedure, and assume Berkman Investment Bank takes its green-shoe shares. What the total cash flow to Wayne after the sale? To Berkman Investment Bank? How many shares does Gotham Pension get? 1,256,100 shares (Round to the nearest whole number.) Data Table How many shares does Clark Kent get? 929,514 shares (Round to the nearest whole number.) Click on the following Icon D in order to paste this table's content into a spreadsheet How many shares does Central City get? Bidder Quantity Bid 2,000,000 1,480,000 Gotham Pension Fund 433,355 shares (Round to the nearest whole number.) Clark Kent Investors How many shares does Arthur Curry get? Central City Insurance 690,000 Arthur Curry 430,000 270,062 shares (Round to the nearest whole number.) Barry Allen 320,000 Total 4,920,000 How many shares does Barry Allen get? 200,969 shares (Round to the nearest whole number.) Print Done What is the total cash flow to Wayne after the sale? $ 48,185,522 (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 3.8% commission fee. The SEC has authorized Wayne 5,010,000 shares for this issue. He plans to keep 1,250,000 shares for himself, hold back an additional 210,000 shares according to the green-shoe provision for Berkman Investment Bank, pay off Venture Capitalists with 460,000 shares, and sell the remaining shares at $16.21 a share. Given the bids at the auction (shown on the table here: 9), distribute the shares to all bidders using a pro-rata share procedure, and assume Berkman Investment Bank takes its green-shoe shares. What the total cash flow to Wayne after the sale? To Berkman Investment Bank? How many shares does Gotham Pension get? 1,256,100 shares (Round to the nearest whole number.) Data Table How many shares does Clark Kent get? 929,514 shares (Round to the nearest whole number.) Click on the following Icon D in order to paste this table's content into a spreadsheet How many shares does Central City get? Bidder Quantity Bid 2,000,000 1,480,000 Gotham Pension Fund 433,355 shares (Round to the nearest whole number.) Clark Kent Investors How many shares does Arthur Curry get? Central City Insurance 690,000 Arthur Curry 430,000 270,062 shares (Round to the nearest whole number.) Barry Allen 320,000 Total 4,920,000 How many shares does Barry Allen get? 200,969 shares (Round to the nearest whole number.) Print Done What is the total cash flow to Wayne after the sale? $ 48,185,522 (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
Related questions
Question
Question 10. Attached is a similar question with answers. Please complete in the same format :)
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 3.8%
commission fee. The SEC has authorized Wayne 5,010,000 shares for this issue. He plans to keep 1,250,000 shares for himself, hold back an additional 210,000
shares according to the green-shoe provision for Berkman Investment Bank, pay off Venture Capitalists with 460,000 shares, and sell the remaining shares at $16.21 a
share. Given the bids at the auction (shown on the table here: E), 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?
How many shares does Gotham Pension get?
1,256,100 shares (Round to the nearest whole number.)
Data Table
How many shares does Clark Kent get?
929,514 shares (Round to the nearest whole number.)
Click on the following Icon D in order to paste this table's content into a
spreadsheet
How many shares does Central City get?
Bidder
Quantity Bid
433.355 shares (Round to the nearest whole number.)
Gotham Pension Fund
2,000,000
Clark Kent Investors
1,480,000
How many shares does Arthur Curry get?
Central City Insurance
690,000
Arthur Curry
430,000
270.062 shares (Round to the nearest whole number.)
Barry Allen
320,000
Total
4,920,000
How many shares does Barry Allen get?
200,969 shares (Round to the nearest whole number.)
Print
Done
What is the total cash flow to Wayne after the sale?
$ 48,185,522 (Round to the nearest dollar.)
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 3.8%
commission fee. The SEC has authorized Wayne 5,220,000 shares for this issue. He plans to keep 1,120,000 shares for himself, hold back an additional 230,000
shares according to the green-shoe provision for Berkman Investment Bank, pay off Venture Capitalists with 540,000 shares, and sell the remaining shares at $16.36 a
share. Given the bids at the auction (shown on the table here: E ), 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?
Data Table
Click on the following Icon a in order to paste this table's content into a
spreadsheet
Quantity Bid
1,800,000
Bidder
Gotham Pension Fund
Clark Kent Investors
1,430,000
Central City Insurance
700,000
Arthur Curry
370,000
300.000
Barry Allen
Total
4,600,000
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 3 steps with 2 images
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