egat Light sold 190.000 shares in an initial public offering. The underwriter's explicit fees were $68.000. The offering price for the shares was $38. but immediately upon issue, the share price jumped to $45. What is the best estimate of the total cost to Barnegat Light of the equity issue? Multiple Choice ο ο ο ο $1,330,000 $68,000 $1,262,000 $1,398,000

egat Light sold 190.000 shares in an initial public offering. The underwriter's explicit fees were $68.000. The offering price for the shares was $38. but immediately upon issue, the share price jumped to $45. What is the best estimate of the total cost to Barnegat Light of the equity issue? Multiple Choice ο ο ο ο $1,330,000 $68,000 $1,262,000 $1,398,000

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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Moonscape has just completed an initial public offering. The firm sold 4 million shares at an offer price of $10 per share. The underwriting spread was $0.60 a share. The price of the stock closed at $14.00 per share at the end of the first day of trading. The firm incurred $400,000 in legal, administrative, and other costs. What were flotation costs as a fraction of funds raised? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Flotation cost as percent of funds raised %
last question need to be solved
Moonscape has just completed an initial public offering. The firm sold 3 million shares at an offer price of $12 per share. The underwriting spread was $0.30 a share. The price of the stock closed at $18.00 per share at the end of the first day of trading. The firm incurred $300,000 in legal, administrative, and other costs. What were flotation costs as a fraction of funds raised? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Flotation cost as percent of funds raised %
Disturbed Corp. needs to raise $53.5 million to fund a new project. The company will sell shares at a price of $23.00 in a general cash offer and the company's underwriters will charge a spread of 6 percent. The direct flotation costs associated with the issue are $550,000 and the indirect costs are $375,000. How many shares need to be sold? Multiple Choice 2,216,981 shares 2,209,803 shares 2,326,087 shares 2,517,345 shares 2,421716 shares
Lulu Industries is in the process of selling shares in an auction IPO. At the end of the bidding period, Lulu's investment bank has received the following bids: Number of Shares Bid 50,000 25,000 25,000 100,000 125,000 Price ($) $19.50 $19.25 $19.10 $19.00 $18.75 $18.50 $18.25 $18.00 $17.75 $17.50 What will the offer price of these shares be if Lulu is selling 0.5 million shares? $18.75 $19.10 $18.50 75,000 150,000 240,000 80,000 125,000 $18.25
MULTIPLE CHOICE Travis Company has 10,000 shares of common stock with a par value of P10 per stock. A 2-for-1 stock split is made. The market price of the stock was P16 prior to the split. What will the market price per share be immediately subsequent to the stock split? *a. P4b. P6c. P8d. P10e. None of the above
Having heard about IPO underpricing, I put in an order to my broker for 1, 120 shares of every IPO he can get for me. After 3 months, my investment record is as follows: IPO Shares Allocated to Me Price per Share Initial Return A 620 $ 10 6 % В 320 20 14 C 1, 1208-3D0 12 23 a. What is the average underpricing in dollars of this sample of IPOs? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is the average initial return on my "portfolio" of shares purchased from the four IPOs that I bid on? When calculating this average initial return, remember to weight by the amount of money invested in each issue.
Br. Shares are IPO published on sale and listed at 8,200 shares in primary market . The investors at IPO offer the price 18.00 with an unwriting discount at 6.5% Secondary market investors however were paying only 16.10 per share for Netshoes at 31.025 at 935 sharesoutstanding. total proceeds =!PO offer price for * IPO.
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
Assume Technical Investors is thinking about three different size offerings for issuance of additional shares. What is the percentage underwriting spread for each size offer? Size of Offer: Public Price: Net to Corporation: A: 1.1 million $30 $27.50 B: 7.0 million $30 $28.44 C: 28.0 million $30 $29.15
Myers Inc. currently has 5, 750,000 shares outstanding, and they trade at a price of $23.76. They need to raise $35,000,000 in new funding, and will execute a Rights Offering at a subscription price of $18.00 per share. At the current share price, what will be the price of one Right leading up to the subscription? Group of answer choices $3.04 $1.46 $1.74 $22.30 $2.96

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