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On January​ 20, Sullivan ​Inc., sold 10 million shares of stock in an SEO. The market...

On January​ 20, Sullivan ​Inc., sold 10 million shares of stock in an SEO. The market price of Sullivan at the time was $41.25 per share. Of the 10 million shares​ sold, 4 million shares were primary shares being sold by the​ company, and the remaining 6 million shares were being sold by the venture capital investors. Assume the underwriter charges 4.9% of the gross proceeds as an underwriting fee.

a. How much money did Sullivan raise?  

b. How much money did the venture capitalists​ receive?

c. If the stock price dropped 2.5% on the announcement of the SEO and the new shares were sold at that​ price, how much money would Sullivan ​receive?

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 2 years ago
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