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RST Inc. wants to raise $30M in an IPO and chose Soldman Gachs to underwrite the offering. The two sides agreed that Soldman Gachs would sell 5M shares to the public and provide $30M in net proceeds to RST. The out of pocket expenses incurred by Soldman Gachs were $500,000. What profit or loss did Security Brokers incur if the issue were sold to the public at $8 / share? What about at $5.50 / share?
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- Beedles Inc. needed to raise $14 million in an IPO and chose Security Brokers Inc. to underwrite the offering. The agreement stated that Security Brokers would sell 3 million shares to the public and provide $14 million in net proceeds to Beedles. The out-of-pocket expenses incurred by Security Brokers in the design and distribution of the issue were $490,000. What profit or loss would Security Brokers incur if the issue were sold to the public at the following average price? Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answers to the nearest dollar. Loss should be indicated by a minus sign. $5 per share? $ $7 per share? $ $4 per share? $Beedles Inc. needed to raise $14 million in an IPO and chose Security Brokers Inc. to underwrite the offering. The agreement stated that Security Brokers would sell 3 million shares to the public and provide $14 million in net proceeds to Beedles. The out-of-pocket expenses incurred by Security Brokers in the design and distribution of the issue were $300,000. What profit or loss would Security Brokers incur if the issue were sold to the public at the following average price? Write out your answer completely. A. $6.5 per share? B.$3.5 per share?Beedles Inc. needed to raise $14 million in an IPO and chose Security Brokers Inc. to underwrite the offering. The agreement stated that Security Brokers would sell 3 million shares to the public and provide $14 million in net proceeds to Beedles. The out-of-pocket expenses incurred by Security Brokers in the design and distribution of the issue were $300,000. What profit or loss did Security Brokers incur if the issue were sold to the public at the following average price? a. $5 per share b. $6 per share c. $4 per share
- Dilan, Inc. is a publicly-traded cyber security company and it is considering a rights offer. The ex-rights price is $36 on the ex-rights day, whereas the rights-on price was $45. The company has 4 million shares outstanding curretly and they plan to raise $16 million through the rights offering. Calculate the subscription price.Beedles Inc. needed to raise $14 million in an IPO and chose Security Brokers Inc. to underwrite the offering The agreement stated that Security Brokers would sell 3 million shares to the public and provide $14 million net proceeds to Beedles. The out- of- pocket expenses incurred by Security Brokers in the design and distribution of the issue were $460,000 . What profit Or loss would Security Brokers incur if the issue were sold to the public at the following average price? Write out your answer completely. For example, 5 million should be entered as 5, 000, 000. Round your answers to the hearest dollar. Loss should be indicated by a minus sign. $5.25 per share? $ $6 per share? $ $3.5 per share? $Security Brokers Inc. specializes in underwriting new issues by small firms. On a recent offering of Beedles Inc., the terms were as follows: Price to public: $5 per share Number of shares: 3 million Proceeds to Beedles: $14,000,000 The out-of-pocket expenses incurred by Security Brokers in the design and distribution of the issue were $360, 000. What profit or loss would Security Brokers incur if the issue were sold to the public at the following average price? Round your answers to the nearest dollar. Loss should be indicated by a minus sign. $5 per share? $ $6.75 per share? $ $4 per share? $
- Bellex Technik AG issues an IPO sold on a best-// basis. The company's investment bank demands a spread of 17 per cent of the offer price, which is set at €30 per share. Three million shares are issued. However, the bank was overly optimistic and eventually is able to sell the shares for only €28. What are the proceeds for the issuer and the underwriter?Killer Shark Inc. makes a surprise cash offer of $22 a share for Goldfish Industries. Before the offer, Goldfish was selling for $18 a share. Goldfish has 1 million shares outstanding. What must Killer Shark believe about the present value of the improvement it can bring to Goldfish’s operations?(answer the next 3 questions with the following information.) A fictitious VC firm, EBV, that is considering a series A investment in a start-up company named Newco. The terms specify that EBV invests $5 million for 5M shares into Newco, which currently has 10M shares allotted to employees and founders. Security structure is as follows: First pay [one] times the Original Purchase Price on each share of Series A Preferred. Thereafter, the Series A Preferred participates with the Common Stock pro rata on an as-converted basis. The liquidation return is capped at four times OPP. EBV has committed capital of $100M with 2% management fee. GP% is 10%. If the exit value is $72, how much is the distribution to the VC? O $32M O $27.3 O $24M O $10.7M
- A broker that brings new issues of small firms to the public market. Its most recent deal for Deer Park, Inc., had the following characteristics: Number of shares: 1,400,000 Proceeds to Deer Park: $13,900,000 Price to public: $15 per share The legal fees were $153,000, printing costs were $56,500, and all the other expenses were $70,000. What is the profit or loss for the broker? Profit / (Loss) $enter the profit or loss in dollarsAn investment bank agrees to underwrite an issue of 15 million shares of stock for Looney Landscaping Corporation. a. The investment bank underwrites the stock on a firm commitment basis, and agrees to pay $10.00 per share to Looney Landscaping Corporation for the 15 million shares of stock. The investment bank then sells those shares to the public for $11.50 per share. How much money does Looney Landscaping Corporation receive? What is the profit to the investment bank? If the investment bank can sell the shares for only $8.50, how much money does Looney Landscaping Corporation receive? What is the profit to the investment bank? b. Suppose, instead, that the investment bank agrees to underwrite the 15 million shares on a best efforts basis. The investment bank is able to sell 13.5 million shares for $10.00 per share, and it charges Looney Landscaping Corporation $0.325 per share sold. How much money does Looney Landscaping Corporation receive? What is the profit to the investment…In the Republic of Atlantis the regulators decide to allow private placement of equity (see problem set 2 extra questions). A firm called Fish Inc. currently trades in their stock market at a price of $3 (Atlantic dollars) with 100 million shares outstanding. The manager currently needs to raise extra $300m. They decide to do that in a private placement and sell the shares to an individual investor at a discount of 20% of current share price. Which of the following statements is (are) true: (i) Private placements are fair. (ii) The company will issue 125m extra shares. (iii) Pre-existing investors will lose $34p per share.Required to answer. Single choice.