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If Parker Inc
If Parker Inc. just sold 8,000,000 shares in an IPO for $13.54 per share. If the underwriter took a 6% fee, and the company incurred $325,000 in legal and consulting costs. What net proceeds did the company receive?
Input your answer in millions, rounded to 2 decimal places, and do NOT enter any symbols such as $, comma or % (e.g. 15.25 not 15250000)
Please explain and show calculations thank youb
Expert Solution
Amount raised = Share price * price
= 80,00,000 * 13.54
= 108320000
Underwriter's fees = Amount raised * Underwriter fees
= 108320000 * 6%
= 6499200
Net Proceeds = Amount raised - Underwriter's fees - Legal and underwriting fees
= 108320000 - 6499200 - 325000
= 101495800
In Millions,
Net proceeds is 101.50 Millions
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