Answer:
$266,684,000 ( or can say $266.7 million)
Explanation:
XYZ receive after commission = number of shares sold * (price per share – commission charged per share)
= 8,800,000 * ($31 - $0.695)
= $266,684,000
Answer:
Cash amount received by XYZ Inc after commission is $266,684,000.00
Explanation:
The total cash received by the investment bank=shares sold*issue price
shares sold is 8.8 million
issue price is $31
total cash received by the investment bank=8,800,000*$31
=$272,800,000
Net proceeds received by XYZ=gross proceeds-underwriting charges
underwriting charges=shares sold*charge per share
=8,800,000*$0.695
=$6,116,000
Net proceeds received by XYZ=$272,800,000 -$6,116,000
=$266,684,000.00
The cash proceeds received by XYZ Inc after the deduction of investment bank charges is =$266,684,000.00
