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crimeas [40]
3 years ago
8

The Boat Works decided to go public by offering a total of 135,000 shares of common stock to the public. The company hired an un

derwriter who arranged a firm commitment underwriting and an initial selling price of $24 a share with a spread of 8.3 percent. As it turned out, the underwriters only sold 122,400 shares to the public. What is the amount paid to the issuer
Business
1 answer:
Alex787 [66]3 years ago
7 0

Answer:

The amount paid to the issuer is $2,971,080.

Explanation:

The total number of shares is 135,000.

Though only 122,400 shares are sold to the public.

The initial selling price is $24.

The spread percentage is given at 8.3%.

The amount paid to the issuer will be

=Total number of shares*Initial selling price (1-spread)

=135,000*24*(1-0.083)

=135,000*24*0.917

=2,971,080

So, the amount paid to the issuer is $2,971,080.

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Failing to analyze and take into account the competitor technological environment.

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3 years ago
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2 years ago
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Conversely, a decrease in production costs increases the quantity supplied.

Thus, the conclusion that can be drawn about the number of books supplied for $16 when an important production input of books increases is that the <u>quantity supplied</u><u> is reduced</u>.

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