On January 20, Whalen Inc., sold 9 million shares of stock in an SEO. The market price of Whalen at the time was $41.25 per share. Of the 9 million shares sold, 4 million shares were primary shares being sold by the company, and the remaining 5 million shares were being sold by the venture capital investors. Assume the underwriter charges 5.2% of the gross proceeds as an underwriting fee. How much money did Whalen raise? $156.42 million $182.35 million $122.46 million $174.29 million
On January 20, Whalen Inc., sold 9 million shares of stock in an SEO. The market price of Whalen at the time was $41.25 per share. Of the 9 million shares sold, 4 million shares were primary shares being sold by the company, and the remaining 5 million shares were being sold by the venture capital investors. Assume the underwriter charges 5.2% of the gross proceeds as an underwriting fee. How much money did Whalen raise? $156.42 million $182.35 million $122.46 million $174.29 million
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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Please show all equations and work as needed. Make the correct answer clear. If possible, please type work so it can be copied. Thank you.
Transcribed Image Text:On January 20, Whalen Inc., sold 9 million
shares of stock in an SEO. The market price of
Whalen at the time was $41.25 per share. Of the
9 million shares sold, 4 million shares were
primary shares being sold by the company, and
the remaining 5 million shares were being sold
by the venture capital investors. Assume the
underwriter charges 5.2% of the gross proceeds
as an underwriting fee. How much money did
Whalen raise?
$156.42 million
$182.35 million
$122.46 million
$174.29 million
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