Tetus Corporation Went Public with an Initial Public Offering of 2.5

question 123

Essay

Tetus Corporation went public with an initial public offering of 2.5 million shares of stock.The underwriter used a firm commitment offering in which the net proceeds was $8.05 per share and the underwriter's spread was 8% of the gross proceeds.Tetus also paid legal and other administrative costs of $250,000 for the IPO.Calculate the gross proceeds and the total funds received from the sale of the 2.5 million shares of stock.

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Definitions:

Out-Of-Pocket Costs

Expenses for medical care that aren't reimbursed by insurance, including deductibles, co-payments, and coinsurance.

Outpatient Facilities

Medical centers or clinics where patients receive treatment without being admitted overnight, including diagnostic services and minor surgical procedures.

Rising Health Care Costs

The increasing expenses associated with medical care services and products.

Medical Illnesses

Conditions that cause dysfunction or discomfort to a person’s health, often requiring medical treatment.