An IPO is offered at $9.50 per share for 7 million shares. The IPO underwriters had a spread of 7.25%. What price did the underwriters pay per share of the IPO firm? A. $8.81 B. $9.50 C. $8.86 D. $9.17 E. $10.19
An IPO is offered at $9.50 per share for 7 million shares. The IPO underwriters had a spread of 7.25%. What price did the underwriters pay per share of the IPO firm? A. $8.81 B. $9.50 C. $8.86 D. $9.17 E. $10.19
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![An IPO is offered at $9.50 per share for 7 million shares. The IPO underwriters had a spread of 7.25%. What price did the underwriters pay per share of the IPO firm?
A. $8.81
B. $9.50
C. $8.86
D. $9.17
E. $10.19](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe6b1ea82-0ea6-4e57-a64a-1d07ab719f3d%2Ffc41e760-a8eb-4927-b67b-f20695f6b5d7%2Fyfx3w7i_processed.png&w=3840&q=75)
Transcribed Image Text:An IPO is offered at $9.50 per share for 7 million shares. The IPO underwriters had a spread of 7.25%. What price did the underwriters pay per share of the IPO firm?
A. $8.81
B. $9.50
C. $8.86
D. $9.17
E. $10.19
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