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Wyatt Oil has 8 million shares outstanding and is about to issue 10 million new shares in an IPO. The IPO price has been set at $15 per share, and the underwriting spread is 6%. The IPO is a big success with investors, and the share price rises to $35 the first day of trading. The amount that Wyatt Oil raised during the IPO is closest to: 113 million 141 million 150 million 350 million

Respuesta :

Answer: 141 million

Explanation:

Parrain

Based on the number of shares issued by Wyatt Oil and the price it was issued at, the amount raised during the IPO was $141 million.

What amount was raised by Wyatt Oil?

This amount can be found as:

= Number of shares sold x ( Price of share x (1 - Underwriting spread))

Solving gives:

= 10 million x (15 x ( 1 - 6%))

= $141 million

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