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Learn what truly sets the UC Riverside MBA apart and how it helps in your professional growth
26 Apr 2020, 00:02
Kudos
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A press release on Facebook's IPO published on May 17, 2012:
Facebook today announced the pricing of its initial public offering of 421,233,615 shares of its common stock at a price to the public of $38 per share.
The shares are expected to begin trading on the NASDAQ Global Select Market on May 18, 2012, under the symbol "FB." Facebook is offering 180,000,000 shares of Class A common stock and selling stockholders are offering 241,233,615 shares of Class A common stock. Closing of the offering is expected to occur on May 22, 2012, subject to customary closing conditions.
In addition, Facebook and the selling stockholders have granted the underwriters a 30-day option to purchase up to 63,185,042 additional shares of Class A common stock to cover over-allotments, if any.
Facebook today announced the pricing of its initial public offering of 421,233,615 shares of its common stock at a price to the public of $38 per share.
The shares are expected to begin trading on the NASDAQ Global Select Market on May 18, 2012, under the symbol "FB." Facebook is offering 180,000,000 shares of Class A common stock and selling stockholders are offering 241,233,615 shares of Class A common stock. Closing of the offering is expected to occur on May 22, 2012, subject to customary closing conditions.
In addition, Facebook and the selling stockholders have granted the underwriters a 30-day option to purchase up to 63,185,042 additional shares of Class A common stock to cover over-allotments, if any.
$2.4 billion
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
8% (02:04) correct
92%
(02:16)
wrong
based on 646
sessions
History
Date
Time
Result
Not Attempted Yet
1. The total value of Class A common shares to be offered to the public on May 18, 2012 at $38 per share is most closest to:
| $2.4 billion | |
| $6.8 billion | |
| $9.2 billion | |
| $16.0 billion | |
| $18.0 billion |
ShowHide Answer
Official Answer
$2.4 billion
Assuming the same geographic segmentation for Facebook users in September 2009 as in December 2011, the number of users in Asia in September 2009 exceeded 50 million.: Yes
The number of Facebook users increased between December 2011 and the time of the IPO in May of 2012.: No
The total number of users in all regions in the "Regions" tab matches the number of active users in December 31, 2011 shown in the "User Growth" tab.: Yes
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
75%
(hard)
Question Stats:
59% (02:50) correct
41%
(02:44)
wrong
based on 352
sessions
History
Date
Time
Result
Not Attempted Yet
2. For each of the following statements, select Yes if, from the information provided, it can be shown that the statement is true. Otherwise, select No.
| Yes | No | |
| Assuming the same geographic segmentation for Facebook users in September 2009 as in December 2011, the number of users in Asia in September 2009 exceeded 50 million. | ||
| The number of Facebook users increased between December 2011 and the time of the IPO in May of 2012. | ||
| The total number of users in all regions in the "Regions" tab matches the number of active users in December 31, 2011 shown in the "User Growth" tab. |
ShowHide Answer
Official Answer
Assuming the same geographic segmentation for Facebook users in September 2009 as in December 2011, the number of users in Asia in September 2009 exceeded 50 million.: Yes
The number of Facebook users increased between December 2011 and the time of the IPO in May of 2012.: No
The total number of users in all regions in the "Regions" tab matches the number of active users in December 31, 2011 shown in the "User Growth" tab.: Yes
26 Apr 2020, 01:46
Kudos
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1)For first the answer should be D,since total shares =421233615,price per share is 38$ so total price is 421233615*38= 16 Billion $ and if we calculate the amount agreed to underwriters that is coming as 2.4 billion $
2)a)Yes,since the increment for total users from September 2009 to December 2011 is 166% ,so by that same funda,we have 184 million users in Asia in December 2011 ,so users in September 2009 would be 184/1.66=110 million
b)No,since the graph is only upto December 2011 so we cannot tell about May 2012
c)Yes,the sum of all values in regions tab is 175+6+142+223+38+18+184+13=799= total shown in user growth graph
Posted from my mobile device
2)a)Yes,since the increment for total users from September 2009 to December 2011 is 166% ,so by that same funda,we have 184 million users in Asia in December 2011 ,so users in September 2009 would be 184/1.66=110 million
b)No,since the graph is only upto December 2011 so we cannot tell about May 2012
c)Yes,the sum of all values in regions tab is 175+6+142+223+38+18+184+13=799= total shown in user growth graph
Posted from my mobile device
05 Jan 2024, 04:59
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Apt0810
My calculations were just like yours for answer A, however i did not include anything on the underwriters. I answered $16B. Could you / someone explain to me why the correct answers is $2.4B (the value of amount pledged to underwriters?
