YVRYVR​, 

Inc. just announced a 

1010​-million-share 

seasoned equity offering​ (SEO) at 

​$40.4040.40 

per share. If all of the SEO shares are primary shares and its underwriter charges 

8.98.9​% 

of the gross​ proceeds, how much new capital will 

YVRYVR 

​raise?

Question content area bottom

Part 1

After underwriting​ fees, 

YVRYVR 

will raise 

​$enter your response here 

million. ​ (Round to two decimal​ places.)

To determine how much new capital YVRYVR will raise after underwriting fees, we first calculate the total gross proceeds from the seasoned equity offering (SEO) and then subtract the underwriting fees.

### Step 1: Calculate the Gross Proceeds
The gross proceeds are calculated by multiplying the number of shares by the offering price per share:

\[
\text{Gross Proceeds} = \text{Number of Shares} \times \text{Price per Share}
\]

Given values:

- Number of Shares = 1,010 million shares
- Price per Share = \$40.40

\[
\text{Gross Proceeds} = 1,010 \times 40.40 = 40,804 \text{ million dollars}
\]

### Step 2: Calculate the Underwriting Fees
The underwriting fee is 8.9% of the gross proceeds:

\[
\text{Underwriting Fee} = 8.9\% \times 40,804 = 0.089 \times 40,804 = 3,633.56 \text{ million dollars}
\]

### Step 3: Calculate the Net Proceeds
Subtract the underwriting fees from the gross proceeds to get the net capital raised:

\[
\text{Net Proceeds} = 40,804 - 3,633.56 = 37,170.44 \text{ million dollars}
\]

### Final Answer
YVRYVR will raise:

\[
\boxed{37,170.44 \text{ million dollars}}
\]

Would you like more details or have any questions?

Here are some related questions:
1. What are seasoned equity offerings (SEOs) and how do they differ from initial public offerings (IPOs)?
2. How do underwriting fees affect the amount of capital raised in equity offerings?
3. What factors influence the percentage charged as underwriting fees?
4. How does a seasoned equity offering impact a company’s stock price?
5. What are the risks and benefits of raising capital through SEOs?

**Tip:** When calculating net proceeds from equity offerings, always account for all associated fees and expenses to get the accurate amount raised.

YVRYVR Inc. just announced a 1010-million-share seasoned equity offering (SEO) at $40.40 per share. If all of the SEO shares are primary shares and its underwriter charges 8.9% of the gross proceeds, how much new capital will YVRYVR raise? After underwriting fees, YVRYVR will raise $enter your response here million. (Round to two decimal places.)

Learn how to calculate the net capital raised by YVRYVR Inc. from a seasoned equity offering (SEO). This problem involves percentage calculations of underwriting fees and net proceeds from an offering of 1010 million shares at $40.40 per share with an 8.9% fee.

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