The Peter Corporation and the Sellers Company have both announced IPOs. You place an order for 1,250 shares of each IPO. One of the IPOs is underpriced by $15.50 and the other is overpriced by $8.25. If you could get all of the shares you ordered for each IPO, what would your profit be? Multiple Choice $9,062.50 $7,552.00 $19,375.00 $8,307.25 $29,687.50
The Peter Corporation and the Sellers Company have both announced IPOs. You place an order for 1,250 shares of each IPO. One of the IPOs is underpriced by $15.50 and the other is overpriced by $8.25. If you could get all of the shares you ordered for each IPO, what would your profit be?
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$9,062.50
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$7,552.00
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$19,375.00
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$8,307.25
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$29,687.50
The Bert Corporation and Ernie, Incorporated, have both announced IPOs. You place an order for 550 shares of each IPO. One of the IPOs is underpriced by $15.00 and the other is overpriced by $5.75. You will receive all of the shares you ordered of the overpriced IPO, but only one-half of the shares you ordered of the underpriced IPO. What profit do you expect?
Multiple Choice-
$5,087.50
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$4,125.00
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$3,332.25
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$962.50
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$11,412.50
Gravity Company needs to raise $49 million to fund its expansion plans. The company will sell shares at a price of $28.20 in a general cash offer and the company's underwriters will charge a spread of 7.5 percent. How many shares need to be sold?
Multiple Choice-
1,737,589 shares
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1,385,453 shares
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2,087,194 shares
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1,616,362 shares
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1,878,474 shares
Jenny Corporation needs to raise $57 million to fund a new project. The company will sell shares at a price of $29.80 in a general cash offer and the company's underwriters will charge a spread of 7.5 percent. The direct flotation costs associated with the issue are $1,125,000. How many shares need to be sold?
Multiple Choice-
1,779,304 shares
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1,912,752 shares
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2,010,702 shares
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1,846,028 shares
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2,108,652 shares
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