1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
svetlana [45]
3 years ago
11

A corporation is issuing 5,000,000 shares of stock at a public offering price of $13 per share. The manager of the underwriting

syndicate receives $0.15 per share. The syndicate members' compensation is $0.65 per share for each share they sell. The selling group's concession is $0.40 per share for each share they sell. The syndicate is allocated 4,000,000 shares and the selling group is allocated 1,000,000 shares. When the issue is completely sold, the managing underwriter's fee will total:
Business
1 answer:
pentagon [3]3 years ago
8 0

Answer:

$12.20 per share for a total of $61,000,000

Explanation:

Calculation to determine how much will the managing underwriter's fee will total:

First step is to calculate the underwriting risk. Amount

Underwriting risk=($0.65 - $0.40)

Underwriting risk=$0.25

Second step is to calculate The total spread is

Total spread=($0.15+ $0.25 +$0.40 )

Total spread=$0.80

Now let determine the amount The issuer will receive and the Total

Amount received = ($13.00 - $0.80)

Amount received=$12.20 per share

Total= ($12.20 x 5,000,000 shares)

Total = $61,000,000

Therefore When the issue is completely sold, the managing underwriter's fee will total:$12.20 per share for a total of $61,000,000

You might be interested in
Samuel owns a bond with a par value of $5,000 and a coupon rate of 5 percent. he will receive _____ in annual interest until the
tester [92]
Given:
Par value of the bond : 5,000
coupon rate of the bond: 5%

par value x coupon rate = annual interest

5,000 x 5% = 250 annual interest

Samuel will receive an annual interest of $250 until the bond reaches maturity, or he sells the bond to someone else.

Regardless of the changes in bond prices in the market, Samuel will always receive a fixed annual interest of 250 from his bond.


4 0
3 years ago
True or False: Cutting advertising expenses often causes an erosion of profit
cupoosta [38]

Answer:

So True

Explanation:

8 0
2 years ago
distributable net income (DNI) for the Sampson estate is $20,000, including $3,000 of tax-exempt interest income. If the executo
Sliva [168]

Answer:

$8,000

Explanation:

Income distribution deductions apply only to an estate or trust's distributable net income (DNI). In this context, the beneficiaries of an estate or a trust are taxed directly based on the money distributed to them. That means that the estate or trust can deduct distributions when calculating taxes. This is done to avoid double taxation, since the beneficiaries are taxed, then the estate or trust is not.

5 0
3 years ago
Portside Watercraft uses a job order costing system. During one month Portside purchased $173,000 of raw materials on credit; is
Nadya [2.5K]

Answer:

One parent organism and no egg or sperm

Explanation:

5 0
3 years ago
If you calculate the cost of attendance (COA) at an institute of higher
lutik1710 [3]
The answer is tuition fees, room and board, books, supplies and other expenses.
6 0
2 years ago
Other questions:
  • Standing in line to buy a ticket for a movie where there are multiple windows
    12·1 answer
  • If the effects of pollution on society as a measure of welfare were included in GDP calculations, that measure level of GDP woul
    11·1 answer
  • Suppose that MUX = Y and MUY = X. The prices of good X and good Y are $5 and $4, respectively. How many units of good X does the
    15·1 answer
  • Identify which type of sampling is​ used: random,​ systematic, convenience,​ stratified, or cluster. upper a radio station asks
    7·1 answer
  • Ann lives in Princeton, New Jersey, and commutes by train each day to her job in New York City (20 round trips per month). When
    14·1 answer
  • Which idea forms the basis of double-entry accounting?
    9·1 answer
  • Countries A and B are exactly similar in terms of resources and technology. Still country A reported a higher growth rate than c
    13·1 answer
  • Calculate Cash FlowsNature’s Way Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The garden
    15·1 answer
  • how does our ear know where a sound is coming from? And don't use go.ogle cause i didn't understand what is written there.​
    10·2 answers
  • In microeconomics, the term ___________________ is synonymous with decreasing returns of scale.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!