An online medical advice company just completed an IPO with an investment bank on a firm-commitment basis. The firm issued five million shares of common stock, and the underwriting fees were $2.40 per share. The offering price was $27.90 per share. What were the total proceeds from the common-stock sale

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An online medical advice company just completed an IPO with an investment bank on a firm-commitment basis. The firm issued 5 million shares of common stock, and the underwriting fees were $2.40 per share. The offering price was $27.90 per share. What were the total proceeds from the common-stock sale? (Round answer to nearest whole dollar, e.g. 5,275.)

Total proceeds = $

LINK TO TEXT How much money did the company receive? (Round answer to nearest whole dollar, e.g. 5,275.)

Net proceeds to firm = $

LINK TO TEXT How much money did the investment bank make? (Round answer to nearest whole dollar, e.g. 5,275.)

Underwriting spread = $

Explanation:

the total proceeds from the common-stock sale= shares issued X offer price

5,000,000 X 27.90 = 139,500,000

Net proceeds to firmshares issued X (offer price-underwriting fees) 5,000,000 X (27.90-2.4)

=127,500,000

Underwriting spreads= spread issued X underwriting fees per share

5,000,000 X 2.4

=12,000,000

answer; (c) penalty

answer; 20% is your answer;