Ethanol Lawn Mowers issued 500,000 shares to the public. The gross proceeds were $31.25 million and the net proceeds were $30 million. Merrel Bench was the lead underwriter and deal negotiator, but 10 other investment bankers (one of which was Golden Sax) were also used to put up capital and help sell the issue. Which of the following statements is/are correct? 1. The public paid $62.50 a share. II. Golden Sax was the originating house. III. The spread per share was $3.50. IV. Merrel Bench is the originating house. V. This offer was a syndicated deal. Multiple Choice I and V only I, IV, and V only I, II, and IV only Ill and V only II and III only < Prev 15 of 20 Next >

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
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Ethanol Lawn Mowers issued 500,000 shares to the public. The gross proceeds were $31.25 million and the net proceeds were $30 million. Merrel Bench was the lead underwriter and deal negotiator, but 10 other
investment bankers (one of which was Golden Sax) were also used to put up capital and help sell the issue. Which of the following statements is/are correct?
1. The public paid $62.50 a share.
II. Golden Sax was the originating house.
III. The spread per share was $3.50.
IV. Merrel Bench is the originating house.
V. This offer was a syndicated deal.
Multiple Choice
I and V only
I, IV, and V only
I, II, and IV only
Ill and V only
II and III only
< Prev
15 of 20
Next >
Transcribed Image Text:Ethanol Lawn Mowers issued 500,000 shares to the public. The gross proceeds were $31.25 million and the net proceeds were $30 million. Merrel Bench was the lead underwriter and deal negotiator, but 10 other investment bankers (one of which was Golden Sax) were also used to put up capital and help sell the issue. Which of the following statements is/are correct? 1. The public paid $62.50 a share. II. Golden Sax was the originating house. III. The spread per share was $3.50. IV. Merrel Bench is the originating house. V. This offer was a syndicated deal. Multiple Choice I and V only I, IV, and V only I, II, and IV only Ill and V only II and III only < Prev 15 of 20 Next >
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