A firm goes public. The firm receives $35 for each of the 7.75 million shares sold. The initial offering price was $37 per share, and the stock rose to $38.25 per share is the first few minutes of trading. The firm paid $2,085,000 in direct legal and other costs and $833,000 in indirect cost. What were the underwrites spread of this offer?
A firm goes public. The firm receives $35 for each of the 7.75 million shares sold. The initial offering price was $37 per share, and the stock rose to $38.25 per share is the first few minutes of trading. The firm paid $2,085,000 in direct legal and other costs and $833,000 in indirect cost. What were the underwrites spread of this offer?
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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A firm goes public. The firm receives $35 for each of the 7.75 million shares sold. The initial offering price was $37 per share, and the stock rose to $38.25 per share is the first few minutes of trading. The firm paid $2,085,000 in direct legal and other costs and $833,000 in indirect cost. What were the underwrites spread of this offer?
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