Problembarnegat light sold 210000 shares in an initial, Ask an Expert

Finance

Problem:

Barnegat Light sold 210,000 shares in an initial public offering. The underwriter's explicit fees were $72,000. The offering price for the shares was $42, but immediately upon issue, the share price jumped to $52.

Required:

Question: What is the best estimate of the total cost to Barnegat Light of the equity issue?

$2,028,000
$2,172,000
$72,000
$2,100,000

Note: Please provide equation and explain comprehensively and give step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91149608

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