solve a, b and c and round to two decimal places 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 sold, million shares were primary shares being sold by the company, and the remaining 6 million shares were being sold by theventure capital investors. Assume the underwriter charges 4.8% of the gross proceeds as an underwriting fee.a. How much money did Whalen raise?b. How much money did the venture capitalists receive?c. If the stock price dropped 2.1% on the announcement of the SEO and the new shares were sold at that price, how much money would Whalen receive?a. How much money did Whalen raise?After underwriting fees, Whalen raised $ million. (Round to two decimal places.)C

Given: Particulars No. shares sold 10 Primary shares 4 Venture capital 6 Underwriting…

Answered: On January 20, Whalen Inc. sold 10…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter20: Financing With Derivatives

Section: Chapter Questions

Problem 8P

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