Your Company has 100 million of common stock shares outstanding and is planning a 10 million shares SEO. At the time of the announcement, the stock was $20 per share. Of these 10 million shares sold: 8 million shares are shares being sold by your company and the remaining shares are sold by original investors in your company (venture capitalists). Underwriter’s charge is expected to be 3% of the gross proceeds. How much money will your company raise? In real market conditions: a) will your company raise more or less to your answer above? b) likely time to implement/execute this SEO? Explain briefly
Your Company has 100 million of common stock shares outstanding and is planning a 10 million shares SEO. At the time of the announcement, the stock was $20 per share. Of these 10 million shares sold: 8 million shares are shares being sold by your company and the remaining shares are sold by original investors in your company (venture capitalists). Underwriter’s charge is expected to be 3% of the gross proceeds. How much money will your company raise? In real market conditions: a) will your company raise more or less to your answer above? b) likely time to implement/execute this SEO? Explain briefly
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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Your Company has 100 million of common stock shares outstanding and is planning a 10 million shares SEO. At the time of the announcement, the stock was $20 per share. Of these 10 million shares sold: 8 million shares are shares being sold by your company and the remaining shares are sold by original investors in your company (venture capitalists). Underwriter’s charge is expected to be 3% of the gross proceeds. How much money will your company raise?
In real market conditions: a) will your company raise more or less to your answer above? b) likely time to implement/execute this SEO? Explain briefly.
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