Question

The Wiley Oakley Co. has just gone public. Under a firm commitment agreement, the company received $21.05 for each of the 6.59 million shares sold. The initial offering price was $22.90 per share, and the stock rose to $29.41 per share in the first few minutes of trading. The company paid $909,000 in legal and other direct costs and $184,000 in indirect costs.

What is the net amount raised? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Round your answer to the nearest whole number, e.g., 32.)

Answer 1

net amount raised:

amount received under firm agreement ($21.05*6.59 million)	138,719,500
less:legal expenses	(909,000)
less: indirect costs	(184,000)
net amount raised	137,626,500