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Snezhnost [94]
3 years ago
10

In a fully underwritten offering a firm sells 1 million shares of stock through a fully underwritten offering. Their banker char

ged a $2.45 spread and sold the stock to the public at a price of $35 per share. The issuing firm also pays $250,000 in other direct costs to complete the sale. What is the firm's net proceeds per share from the sale? $33.55 $35.00 $32.30 $32.55
Computers and Technology
1 answer:
amid [387]3 years ago
3 0

Answer:

The correct answer is $32.30

Explanation:

1 million shares sold at $35 per share equals to $35 million. $2.45 spread per share for 1 million is equal to $2.45 million and the firm also paid the $250,000 for other costs. With the spread added, that makes $2.7 million. If you subtract that from the total sales of $35 million, you get $32.3 million, so the firm's net proceedings come up to $32.30 per share for a million shares.

I hope this answer helps.

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Weather fronts are those visible colorful lines that we see moving across weather maps. They represent boundaries that separate two air masses of different air temperatures and humidity. A good example of weather fronts are warm fronts. A Warm frontal type is warm air that moves and advances rapidly towards the cold air to replace the rather cooler air that stands in its path. It sort of collides with the cold air. When this happens, the weather becomes more humid and warm. It is symbolized by a red curved line with red semicircles. The red semicircles are pointed towards the direction of the warm air.

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