On January 20, Whalen Inc., sold 10 million shares of stock in an SEO. The market price of Whalen at the time was $42.00 per share. Of the 10 million shares, 5 million 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 4.5% of the gross proceeds as n underwriting fee.

a. How much money did Whalen raise?

b. How much money did the venture capitalists receive?

c. If the stock price dropped 3.9% on the announcement of the SEO and the new shares were sold at that price, how much money would Whalen receive?