eoc_chapter_15 - Net amount raised $104,750,000 Total...

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Chapter 15 Problems 1-7 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
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Chapter 15 Question 1 Input Area: Undervalued IPO $6 Overvalued IPO $3 Price $30 Number of shares 1,000 Output Area: If you receive 1000 shares each, the profit is: $3,000 If you get only 500 shares, profit is 0.00 This is an example of the winner's curse.
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Chapter 15 Question 2 Input Area: Funds needed $60,000,000 Offer price $75 Spread 7% Output Area: Proceeds from sale $64,516,129 Number of shares offered 860,215
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Chapter 15 Question 3 Input Area: Funds needed $60,000,000 Offer price $75 Spread 7% Additional expenses $600,000 Output Area: Proceeds from sale $65,161,290 Number of shares offered 868,817
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Chapter 15 Question 4 Input Area: Company price per share $31 Initial offer price $33 Shares sold 3,400,000 New price $41 Direct costs $450,000 Indirect costs $200,000 Output Area:
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Unformatted text preview: Net amount raised $104,750,000 Total direct costs 7,250,000 Total indirect costs 27,400,000 Total costs $34,650,000 Flotation cost 33.08% Chapter 15 Question 5 Input Area: Funds needed $35,000,000 Offer price $42 Spread 6% Output Area: Proceeds from sale $37,234,043 Number of shares offered 886,525 Chapter 15 Question 6 Input Area: Funds needed $35,000,000 Offer price $42 Spread 6% Additional expenses $400,000 Output Area: Proceeds from sale $37,659,574 Number of shares offered 896,657 Chapter 15 Question 7 Input Area: Company price per share $15 Initial offer price $17 Shares sold 3,500,000 New price $23 Direct costs $400,000 Indirect costs $175,000 Output Area: Net amount raised $51,925,000 Total direct costs $5,650,000 Total indirect costs $22,925,000 Total costs $28,575,000 Flotation cost 55.03%...
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This note was uploaded on 05/01/2009 for the course FINC 106 taught by Professor Dr.nehale during the Spring '09 term at Baptist College of Health Sciences.

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eoc_chapter_15 - Net amount raised $104,750,000 Total...

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