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You decide to take your company public by offering a total of 50,000 shares of common stock to the public in an initial public offering (IPO) . You hire an underwriter who arranges a full commitment underwriting and suggests an initial selling price of $28 a share with an 8 % spread. As it turns out, the underwriters only sell 48,500 shares. How much cash will you receive from your IPO?
Net Capital Loss
The financial loss that occurs when the total capital losses from investments exceed the total capital gains in a fiscal year.
Carry Back
A tax provision that allows a business to apply current year net operating losses to past tax years to receive a tax refund for previously paid taxes.
Carry Forward
A tax provision allowing taxpayers to apply a current year's unused tax credits or losses to future tax years.
80% Test
A requirement or threshold in various contexts where at least 80% of some criteria must be met, but in finance, it often relates to rules around shareholder voting rights or dividend distribution policies.
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