Dallas Market Makers is offering 800 shares in a Dutch auction IPO. The following bids have been received.Bidder Quantity PriceA200$ 2510024100235002280021BCDEHow much will Bidder B have to spend to purchase all of the shares that have been allocated to him?Multiple ChoiceO$1595.65$1,955.56$1,995.83$2,393.43$2,433.23

Given -We are given the following data -Total shares to be offered in auction : 800Bids given to 5…

Dallas Market Makers is offering 800 shares in a Dutch auction IPO. The following bids have been received. Bidder Quantity Price A 200 $ 25 B 100 с 100 D 500 E 800 How much will Bidder B have to spend to purchase all of the shares that have been allocated to him? Multiple Choice O O $1595.65 $1,955.56 24 23 22 21 $1,995.83

Dallas Market Makers is offering 800 shares in a Dutch auction IPO. The following bids have been received. Bidder Quantity Price A 200 $ 25 B 100 с 100 D 500 E 800 How much will Bidder B have to spend to purchase all of the shares that have been allocated to him? Multiple Choice O O $1595.65 $1,955.56 24 23 22 21 $1,995.83

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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Toronto Corporation wants to raise $1,210,000 via a rights offering. The company currently has 220,000 shares of common stock outstanding that sells for $32 per share. The issue will allow current stockholders to purchase one additional share for 5 rights. a) What will be the ex-rights stock price, the value of a right, and the appropriate subscription price? b) If 2 rights are needed to purchase on additional share, how does the stockholders’ wealth change? c) Why do you think the company chose a rights issue rather than a general cash offer to raise new capital?
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
Hassinah, Incorporated, is proposing a rights offering. Presently, there are 800,000 shares outstanding at $48 each. There will be 160,000 new shares offered at $40 each. a. What is the new market value of the company? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. How many rights are associated with one of the new shares? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. What is the ex-rights price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the value of a right? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. New market value b. Number of rights needed c. Ex-rights price d. Value of a right
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
Problem 2. You open a 1000 share short position in Happy Bunny Inc. common stock at the bid-ask price spread of $32.00 - $32.50. When you close your position the bid-ask prices are $30.25 – $30.50. Happy Bunny Inc. common stock paid a cash dividend in the amoount of $0.20 per share while you held the short position. If you pay a commission of $10 per trade, and interest rates are zero, calculate your profit or loss on the investment position?
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.
You submitted an 1OC (immediate-or-cancel), buy order for 200 shares at a limit price of $30 per share. Currently there is a sell limit order for 160 shares at $30 per share in the trading system. How many of your shares will get filled: O A. 40 O B. 160 O C. Zero, order will be cancelled
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?
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?
John wants to invest in shares and is trying to decide between two companies(Company A and Company B) in the same industry. After doing his research henotes the following about the two companies:Measure Company A Company BShare Price $10 $15Earnings Per Share $1 $1Dividend $0.50 $1PE Ratio 10 15Dividend Yield 5% 7% Having critically examined the five measures, John decided to purchase 1.5mshares in Company B. At the time when John purchased the shares, the value ofthe equity shares was $3m and the par value was $0.40.Required:a. Explain how each of the measures identified by John could help him in decidingon which company’s shares to buy.b. How did the stock market help John to purchase the shares in Company Bc. Calculate John’s shareholding in Company B and the cost on his investment?d.. What are the benefits John obtains by being a…

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