Canadian Air would like to sell 3825899 shares of stock using Dutch auctionunderwriting. The bids received are:BidderABQuantity650,000750,0001,150,0001,350,000550,000700,000Price313029282726How much will the company raise in its offer? Suppose that the underwritinggross spread is 6%.

Bidder A = 650,000 Shares at $31 (3,825,899 - 650,000) = 3,175,899 Shares remainingBidder B =…

Canadian Air would like to sell 3825899 shares of stock using Dutch auction underwriting. The bids received are: Bidder A Quantity 650,000 750,000 1,150,000 1,350,000 550,000 700,000 Price 31 30 29 28 27 26 How much will the company raise in its offer? Suppose that the underwriting gross spread is 6%

Canadian Air would like to sell 3825899 shares of stock using Dutch auction underwriting. The bids received are: Bidder A Quantity 650,000 750,000 1,150,000 1,350,000 550,000 700,000 Price 31 30 29 28 27 26 How much will the company raise in its offer? Suppose that the underwriting gross spread is 6%

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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1. Swenson Markets would like to sell an additional 1,000 shares of stock using a Dutch auction. The bids received are as follows: (Table below should be interpreted as follows: Bidder A is willing to pay $31 for each share, up to 100 shares while bidder B is willing to pay $29 for each share, up to 100 shares) (Hint: Remember that for Dutch auctions, sell shares first to bidder with willing to pay the highest price and then to bidder with second highest price and so on until all shares are sold. However, every bidder will pay the price of the last bidder to receive any shares. In other words, everyone will pay the lowest price of all successful bidders receiving shares regardless of their own price bids.) Bidder Price A B с 500 D 600 E 400 What is the total amount the issuer will receive from this auction? Ignore costs. Quantity 100 100 $31 $29 $28 $27 $26
Conglomerate Inc. is trading at $80/share, and is about to announce its intent to acquire Tiny Corp. who is an all-equity firm with 20 million shares trading at $5/share. The projected synergies from the acquisition are $15 million. What is the maximum exchange ratio Conglomerate Inc. could offer in a stock swap and still have the deal be positive NPV? 18.4 1.43 11.24 1.66
A speculator can choose between (i) buying 108 shares of a stock for $50.58 per share, and (ii) buying 1080 European call options on that stock with a strike price of $42 for $3.99 per option. At maturity, what is the stock price that would make the two alternatives equally profitable? a. 1.58 O b. 42.81 O c. 47.57 d. 45.96 e. 14.18
Company A has a market capitalization of $2410539999 and 22833777 shares outstanding. It plans to distribute $35977773 through an open market repurchase. Assuming perfect capital markets: What will the price per share of the firm be right after the repurchase?
ABC would like to repurchase 50,000 of its ordinary shares. Investor X offered to sell his 20,000 shares at P20 per share. Investor Y offered to sell his 30,000 shares at P21 per share. Lastly, Investor Z offered to sell his 50,000 shares at P22 per share. ABC eventually paid Investors X and Y P21 per share to complete the repurchase. This is a/an *A. Fixed price tender offerB. Dutch auction self-tender repurchaseC. Open market operationD. Selective buy-back
One year ago you entered a margin trade involving 200 shares of stock at a price of £35 a share and an initial margin of 60%. Now you sell the stock for £32 a share. What is the initial Dollar margin that you need for the trade? Group of answer choices 8400 3840 4200 2800
You would like to buy shares of Sirius Satellite Radio (SIRI) The current ask and bid quotes are $3.96 and $3.93 respectivety You place a market buy-order for 500 shares that executes at these quoted prices How much money did it cost to buy these shares?
Consider the following table, which is the ECN book for Intertech Company's stock. Entry Number Bid or Ask? Bid Bid Bid Bid Ask Ask Ask Ask 5 ECN Book for Intertech Company Shares 1,000 400 6 7 1 2 3 4 5 8 6 7 8 700 Suppose a new limit order is placed to purchase as many shares as possible at a price of no more than $40.42. A total of be purchased. 300 400 200 100 Which entries will be removed from the ECN after the transaction is complete? Check all that apply. 900 Price $40.06 $40.13 $40.22 $40.31 $40.42 $40.53 $40.63 $40.75 shares will
The bids and bidders in a Dutch auction to sell 20,000 shares are as follows: At what price are the shares sold? How many shares does each bidder get?
A company’s stock currently sells for $81.16. A one-year European put option on that stock with strike price of $85 sells for $16.24, and the risk free interest rate is 1.6%. The market expects the company to pay dividends during that period, and the market consensus is that present value of those dividends is $5.26. The price of a one-year European call option on that stock with strike price of $85 is $_________. (Note i: answer must be accurate to the nearest cent). (Note ii. Use annual compounding NOT exponential compounding for the purpose of this question).
You would like to sell 220 shares of Echo Global Logistics, Inc. (ECHO). The current ask and bid quotes are $15.44 and $15.39, respectively. You place a limit sell order at $15.43.If the trade executes, how much money do you receive from the buyer?
Suppose that a bank purchased 15 million shares of Company E. The shares are bid $34.2 and offer $35.4. The mean and standard deviation of the bid-ask spread are 0.034483 and 0.054, respectively. What is the cost of liquidation that we are 99% confident will not be exceeded (i.e., in a stressed market condition)? O 2.402 O 0.259 O 1.201

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