In a recent IPO, a social network company issued 4,000,000 new shares. The initial price to the public was £22.00 per share. The final first-day closing price was £52.37. If the investment bankers retained £1.45 per share as fees, what was the net proceeds to the social network firm and its market capitalisation? Select one: O a. Net proceeds: £93,800,000; Market capitalisation: £203,680,000 O b. Net proceeds: £88,000,000; Market capitalisation: £88,000,000 O c. Net proceeds: £82,200,000; Market capitalisation: £209,480,000 O d. Net proceeds: £83,200,000; Market capitalisation: £219,480,000

In a recent IPO, a social network company issued 4,000,000 new shares. The initial price to the public was £22.00 per share. The final first-day closing price was £52.37. If the investment bankers retained £1.45 per share as fees, what was the net proceeds to the social network firm and its market capitalisation? Select one: O a. Net proceeds: £93,800,000; Market capitalisation: £203,680,000 O b. Net proceeds: £88,000,000; Market capitalisation: £88,000,000 O c. Net proceeds: £82,200,000; Market capitalisation: £209,480,000 O d. Net proceeds: £83,200,000; Market capitalisation: £219,480,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 12P

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