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

On January​ 20, Metropolitan ​Inc., sold 10 million shares of stock in an SEO. The market price of Metropolitan at the time was $ 42.50 per share. Of the 10 million shares​ sold, 5 million shares were primary shares being sold by the​ company, and the remaining 5 million shares were being sold by the venture capital investors. Assume the underwriter charges 5.2 % of the gross proceeds as an underwriting fee.

a. How much money did Metropolitan ​raise?  

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

c. If the stock price dropped 2.7 % on the announcement of the SEO and the new shares were sold at that​ price, how much money would Metropolitan ​receive?

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Expert Solution

AS NOTHING WAS MENTIONED, ANSWER IS IN MILLIONS AND ROUNDED TO 2 DECIMALS. WANT TO MAKE ANY CHANGE, LET ME KNOW. THANK YOU

jeff jeffy answered 1 year ago
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