Andrew bid $32.50 per share for 500 shares in a Dutch auction for Vargas Resorts shares of stock. The other bids were $33 for 200 shares, $32 for 600 shares, $35 for 100 shares, and $30 for 500 shares. Vargas was seeking to sell 1,000 shares. What price did Andrew pay for each share he purchased? Multiple Choice O O O O $33 $32 $35 $30 $32.50

Andrew bid $32.50 per share for 500 shares in a Dutch auction for Vargas Resorts shares of stock. The other bids were $33 for 200 shares, $32 for 600 shares, $35 for 100 shares, and $30 for 500 shares. Vargas was seeking to sell 1,000 shares. What price did Andrew pay for each share he purchased? Multiple Choice O O O O $33 $32 $35 $30 $32.50

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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Todd Winningham IV has $4,500 to invest. Todd owns shares of Gallagher Tennis Clubs Inc. Gallagher has issued a rights offering to its common shareholders. Five rights plus $44 cash will buy one new share. Gallagher's stock is selling for $59 ex-rights. a-1. How many rights could Todd buy with his $4,500? Number of rights 1500 a-2. Alternatively, how many shares could he buy with the same $4,500 at $59 per share? (Round the final answer to the nearest whole number.) Number of shares 76 b. If Todd invests his $4,500 in Gallagher rights and the price of Gallagher stock rises to $65 per share ex-rights, what would be his dollar profit on the rights? (First compute profits per right.) (Do not round intermediate calculations.) Dollar profit $ 1800 c. If Todd invests his $4,500 in Gallagher shares and the price of a share rises to $65 per share ex-rights, what would be his total dollar profit? (Round intermediate calculations.) Total dollar profit $ 456 d. What would be the answer to part b…
Rial Company wants to sell 400 shares to the public with Dutch auction underwring. The company receives five bids as follows: Bidder Quantity Price A 100 shares $16 B 100 shares 14 C 100 shares 12 D 200 shares 10 E 100 shares 9 1. Who are the bidders that will win the auction? 2. What will be the offer price in the IPO? 3. How much in total will Rial Company receive?
Ryan Neal bought 1,400 shares of Ford at $15.82 per share. Assume a commission of 3% of the purchase price. Ryan sells the stock for $20.13 with the same 3% commission rate. What is the gain or loss for Ryan? (Input the amount as a positive value. Round your answer to the nearest cent.)
Saved Ryan Neal bought 1,200 shares of Ford (F) at $15.98 per share. Assume a commission of 2% of the purchase price. Ryan sells the stock for $22.25 with the same 2% commission rate. What is the gain or loss for Ryan? Note: Input the amount as a positive value. Round your answer to the nearest cent.
Stella places a market order with her broker to buy 1000 shares of OneWorld Corp. The broker buys 1000 shares at $16.70 each, and sells them to Stella at $17.75 each. He also charges a commission of $13.00. What is bid-ask spread in this case?
Mr. Ramon Sy has 100 SMC shares which he bought costing P13,000. He would like to sell his shares registered under his name at a market price of P136/share. His broker executed the order and the transaction was done during the day. His stockbroker charged the minimum stock broker's fee. How much is the realized gains of Mr. Sy? a. P600.00 b. P455.12 c. P405.80 d. P400.00
Taylor bought x shares of a stock that sold for $31.50 per share. He paid a 2% commission on the sale. The total cost of his investment, including the broker fee, was $4,160.70. How many shares did Taylor purchase?
David, a trader, wants to buy 1,000 shares of XYZ stock, while a second trader, Alexis, is willing to sell 1,500 shares of the same stock. Unfortunately, David and Alexis don’t know one another and must complete their transactions using the stock exchange’s market-making dealer. XYZ’s market maker is willing to sell her shares for $32.70 per share and purchase additional shares for $31.25 per share. Select the most appropriate values in the following table: Term Value Bid price Ask price Bid-ask spread If the market maker is willing to purchase the entire block of 1,500 shares from Alexis and, from that block, resell 1,000 shares to David, then the market maker’s net profit from David’s transaction—excluding any inventory effects—will be .
Howard holds 3,000 shares in Bean, a firm with a stock price of $30. Bean has announced a dividend of $1.50 per share that will go ex-dividend tomorrow. Howard doesn’t need cash and so he’d prefer not to have any dividend. Which of the following is closest to the action would you suggest for Howard immediately after the stock goes ex-dividend? Assume perfect markets. Select one: a. Buy 163.64 shares of Bean b. Sell 36,000 shares of Bean c. Buy 272.73 shares of Bean d. Buy 157.90 shares of Bean e. Buy 36,000 shares of Bean
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Wellington Seafood Company would like to sell 4,000 shares of stock to acquire its competitor Kapiti Crab Inc. The manager decides to use Dutch auction underwriting. The bids received are: Bidder ABCDE O $32,340 How much should bidder A need to pay if the bidder receives the allocated shares? Ⓒ $31,405 O $25,124 Quantity 1100 900 1,450 1,550 1,750 O $25,872 Price $29.40 29.05 28.90 28.55 28.35
Which of the following is a primary market transaction? You sell 200 shares of Johnson & Johnson stock on the NYSE through your broker. Johnson & Johnson issues 2,000,000 shares of new stock and sells them to the public through an investment banker. You buy 200 shares of Johnson & Johnson stock from your younger brother. You just give him cash and he gives you the stock¾the trade is not made through a broker. One financial institution buys 200,000 shares of Johnson & Johnson stock from another institution. An investment banker arranges the transaction. You invest $10,000 in a mutual fund, which then uses the money to buy $10,000 of Johnson & Johnson shares on the NYSE.

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