Answer:
This question is incomplete, here's the complete question:
An online medical advice company just completed an IPO with an investment bank on a firm-commitment basis. The firm issued 5 million shares of common stock, and the underwriting fees were $2.40 per share. The offering price was $27.90 per share. What were the total proceeds from the common-stock sale? (Round answer to nearest whole dollar, e.g. 5,275.)
Total proceeds = $
LINK TO TEXT How much money did the company receive? (Round answer to nearest whole dollar, e.g. 5,275.)
Net proceeds to firm = $
LINK TO TEXT How much money did the investment bank make? (Round answer to nearest whole dollar, e.g. 5,275.)
Underwriting spread = $
Step-by-step explanation:
the total proceeds from the common-stock sale= shares issued X offer price
5,000,000 X 27.90 = 139,500,000
Net proceeds to firmshares issued X (offer price-underwriting fees) 5,000,000 X (27.90-2.4)
=127,500,000
Underwriting spreads= spread issued X underwriting fees per share
5,000,000 X 2.4
=12,000,000