Respuesta :
Answer:
The firm will recieve $8,490,000 in net funding.
Explanation:
The cost per share to public is $40.00 per share
The Net Cost to the issuer [$40 per share / 1.10] , so the amount is $36.36 per share
We then know that the Number of shares issued is 250,000 Shares so,
Total amount of shares issued [250,000 Shares x $36.36 per share] =$9,090,000
The firm pays $600,000 in legal fees, so $9,090,000 -$600,000 would be = $8,490,000 which would be the amount that the firm will receive.
Answer:
The firm receive in net funding = $8,490,000
Explanation:
The Share's Offer to the public = $40 per Share
The Final Cost to the Firm or Issuer = $40 × 110 / 100
The Final Cost to the Firm or Issuer = $40 × 1.10
The Final Cost to the Firm or Issuer = $36.36 Per Share
The firm commitment underwriting of Shares = 250,000
The Amount of Share's issued by the firm = 250,000 × 36.36
The Amount of Share's issued by the firm = $9,090,000
The firm receive in net funding = Amount of Share - Legal Fees
The firm receive in net funding = $9,090,000 - $600,000
The firm receive in net funding = $8,490,000
