Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
Bartleby Related Questions Icon

Related questions

Question
Question list
Question 1
O Question 2
Question 3
Question 4
Question 5
K
Initial Public Offering. A biotechnology company, Keros Therapeutics, completed its IPO on April 8, 2020, and listed on the Nasdaq. Keros sold 6,000,000 shares of stock to primary market investors at an IPO offer price of $16.04, with an
underwriting discount of 6.7%. Secondary market investors, however, were paying $20.26 per share for Keros' 19,189,391 shares of stock outstanding (which includes the newly-issued shares).
a. Calculate the total proceeds for Keros' IPO.
b. Calculate the dollar amount of the underwriting fee for Keros' IPO.
c. Calculate the net proceeds for Keros' IPO.
d. Calculate market capitalization for Keros' outstanding stock.
e. Calculate IPO underpricing for Keros' IPO.
f. Explain the IPO underpricing for Keros.
a. The total proceeds for Keros' IPO is $
(Round to the nearest dollar.)
b. The dollar amount of the underwriting fee for Keros' IPO is $. (Round to the nearest dollar.)
c. The net proceeds for Keros' IPO is $
(Round to the nearest dollar.)
d. Keros' market capitalization is $
(Round to the nearest dollar.)
e. Keros' IPO underpricing is%. (Round to two decimal places.)
f. Explain the IPO underpricing for Keros.
"Positive underpricing indicates that secondary-market investors were willing to pay more for the company's shares than the IPO offer price that the shares were sold for in the primary market."
This statement is
(Select the best answer from the drop-down menu.)
expand button
Transcribed Image Text:Question list Question 1 O Question 2 Question 3 Question 4 Question 5 K Initial Public Offering. A biotechnology company, Keros Therapeutics, completed its IPO on April 8, 2020, and listed on the Nasdaq. Keros sold 6,000,000 shares of stock to primary market investors at an IPO offer price of $16.04, with an underwriting discount of 6.7%. Secondary market investors, however, were paying $20.26 per share for Keros' 19,189,391 shares of stock outstanding (which includes the newly-issued shares). a. Calculate the total proceeds for Keros' IPO. b. Calculate the dollar amount of the underwriting fee for Keros' IPO. c. Calculate the net proceeds for Keros' IPO. d. Calculate market capitalization for Keros' outstanding stock. e. Calculate IPO underpricing for Keros' IPO. f. Explain the IPO underpricing for Keros. a. The total proceeds for Keros' IPO is $ (Round to the nearest dollar.) b. The dollar amount of the underwriting fee for Keros' IPO is $. (Round to the nearest dollar.) c. The net proceeds for Keros' IPO is $ (Round to the nearest dollar.) d. Keros' market capitalization is $ (Round to the nearest dollar.) e. Keros' IPO underpricing is%. (Round to two decimal places.) f. Explain the IPO underpricing for Keros. "Positive underpricing indicates that secondary-market investors were willing to pay more for the company's shares than the IPO offer price that the shares were sold for in the primary market." This statement is (Select the best answer from the drop-down menu.)
SAVE
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
bartleby
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
Knowledge Booster
Background pattern image
Similar questions
Recommended textbooks for you
Text book image
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Text book image
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:9781260013962
Author:BREALEY
Publisher:RENT MCG
Text book image
Financial Management: Theory & Practice
Finance
ISBN:9781337909730
Author:Brigham
Publisher:Cengage
Text book image
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Text book image
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Text book image
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education