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On January​ 20, Metropolitan Inc. sold 8 million shares of stock in an SEO. The market...

On January​ 20, Metropolitan Inc. sold 8 million shares of stock in an SEO. The market price of Metropolitan at the time was $ 41.50 per share. Of the 8 million shares​ sold, 4 million shares were primary shares being sold by the​ company, and the remaining 4 million shares were being sold by the venture capital investors. Assume the underwriter charges 4.5 % of the gross proceeds as an underwriting fee.

a. How much money did Metropolitan ​raise?  Round to two decimal places

b. How much money did the venture capitalists​ receive? Round to two decimal places

c. If the stock price dropped 3.5 % on the announcement of the SEO and the new shares were sold at that​ price, how much money would Metropolitan ​receive? Round to two decimal places

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jeff jeffy answered 10 months ago
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