Escape Works decided to go public by offering a total of 135,000 shares of common...
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Escape Works decided to go public by offering a total of 135,000 shares of common stock to the public. The company hired an underwriter who arranged a firm commitment underwriting and an initial selling price of $24 a share with a spread of 8.3 percent. As it turned out, the underwriters only sold 122,400 shares to the public. What is the amount paid to the issuer? a. $2,692,820 b. $3,074,420 c. $2,227,280 d. $2,971,080 e. $2,477,380
Escape Works decided to go public by offering a total of 135,000 shares of common stock to the public. The company hired an underwriter who arranged a firm commitment underwriting and an initial selling price of $24 a share with a spread of 8.3 percent. As it turned out, the underwriters only sold 122,400 shares to the public. What is the amount paid to the issuer?
a.
$2,692,820
b.
$3,074,420
c.
$2,227,280
d.
$2,971,080
e.
$2,477,380
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