Ask Question
BusinessBusiness
16 January, 21:17

Nelson Paints recently went public by offering 50,000 shares of common stock to the public. The underwriters provided their services in a best efforts underwriting. The offering price was set at $17.50 a share and the gross spread was $2.30. After completing their sales efforts, the underwriters determined that they sold a total of 47,500 shares. How much cash did the company receive from its IPO?

+1
Answers (1)
  1. 17 January, 00:15
    0
    cash received $722,000

    Explanation:

    amount received per share:

    17.5 per share

    - 2.3 gross spread

    15.2 per share

    47,500 shares x $15.2 per share = 722,000 total proceeds

    Gross spread: will be the fee of the inderwriters forthe IPO it decrease the amount collected from the issuing company.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Nelson Paints recently went public by offering 50,000 shares of common stock to the public. The underwriters provided their services in a ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
In terms of the tax formula applicable to individual taxpayers, which of the following statements, if any, is correct? a. In arriving at taxable income, a taxpayer must choose between the standard deduction and itemized deductions. b.
Answers (1)
An estimate based on an analysis of receivables shows that $790 of accounts receivables are uncollectible. the allowance for doubtful accounts has a debit balance of $120.
Answers (1)
Suppose Alyssa is a sports fan and buys only baseball caps. Alyssa deposits $3,000 in a bank account that pays an annual nominal interest rate of 10%. Assume this interest rate is fixed-that is, it won't change over time.
Answers (1)
Patton Company purchased $1,500,000 of 10% bonds of Scott Company on January 1, 2018, paying $1,410,375. The bonds mature January 1, 2028; interest is payable each July 1 and January 1. The discount of $89,625 provides an effective yield of 11%.
Answers (1)
An actionable segment is one that A. allows the marketing mix to operate. B. has resources to purchase the product. C. perceives that the product line is useful. D. can be moved through advertising.
Answers (1)
New Questions in Business
Frey Co. is considering the following alternative financing plans: Plan 1 Plan 2 Issue 10% bonds (at face value) $1,080,000 $540,000 Issue preferred $1 stock, $10 par - 900,000 Issue common stock, $5 par 1,080,000 720,000 Income tax is estimated at
Answers (1)
Male drivers between the age of 16 and 20, with a BAL of. 02 are times more likely to die in a single vehicle crash than a sober driver of the same age.
Answers (1)
Benitez co. had sales of $800,000 in 2016. the company expects to incur warranty expenses amounting to 3% of sales. there were $13,000 of warranty obligations paid in cash during 2016. based on this information:
Answers (1)
Which luxury brand shares its name with the french explorer who is credited with naming canada?
Answers (1)
MekTech is a U. S.-based electronics company. It is planning to introduce a new home theatre system in a foreign country.
Answers (2)
Home » Business » Nelson Paints recently went public by offering 50,000 shares of common stock to the public. The underwriters provided their services in a best efforts underwriting. The offering price was set at $17.50 a share and the gross spread was $2.30.
Sign Up Forgot Password?