Get a hold of the prospectus for a recent IPO. How do the issue costs compare with?
Question:
Get a hold of the prospectus for a recent IPO. How do the issue costs compare with?
(a) Those of the Marvin issue and
(b) Those shown in Table 15.3? Can you suggest reasons for the differences?
Transcribed Image Text:
Underwriter's Type Company Issue Amount (S millions) Spread Common Stock: IPO $ 80 Torch Offshore 7.0 Alliance Imaging United Surgical Partners Tellium, Inc. Agere Systems IPO 122 7.0 IPO 126 7.0 IPO 135 7.0 3,600 IPO 3.9 $ 29.6 92.8 Seasoned Seasoned Seasoned Seasoned National Golf Properties, Inc. Lifepoint Hospitals Valspar Corp. Raytheon Co. Pepsico, Inc. Allegheny Energy, Inc. 5.126% 5.0 4.25 168 343.8 3.745 Seasoned Seasoned 534.6 2.0 598.3 3.005 Debt (coupon rato, type, maturity): 8.3% Subordinated notes, 2011 6.875% Medium-term notes, 2006 7.75% Notes, 2011 8.5% Senior notes, 2011 5.875% Global bonds, 2004 3.5% Convertible bonds, 2021 7.45% Global bonds, 2031 8.5% Senior notes, 2008 Bank of the West $ 50 .65 % Maytag Corp. Shurgard Storage Centers Hilton Hotels 185 .50 250 65 300 875 American Home Products 500 35 Cox Communications 685 2.25 1,100 1,500 Kellogg Calpine .875 1.00
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 43% (16 reviews)
Some possible reasons for cost differences a Large issue...View the full answer
Answered By
Lisper Wanja
I am an experienced and highly motivated writer with a passion for the skills listed. I have a proven track record of my expertise and my aim is to deliver quality, well-detailed and plagiarism free projects. My genuine passion for writing combined with my ongoing professional development through school and research makes me an ideal candidate within for any assignment.
4.90+
233+ Reviews
388+ Question Solved
Related Book For
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
Question Posted:
Students also viewed these Corporate Finance questions
-
The mean hourly manufacturing pay is shown in Table 15 for various years. Table 15 Mean Hourly Manufacturing Pay YearMean Hourly Pay (dollars) 19703.24 19807.15 199010.78 200014.32 201018.61...
-
The BOMs for products A and B are shown in Figure. Data from inventory records are shown in table. The MPS calls for 85 units of product A to be started in week 3 and 100 units in week 6. The MPS for...
-
Find the prospectus for a recent IPO. How do the issue costs compare with (a) Those of the Marvin issue and (b) Those shown in Table? Can you suggest reasons for the differences? D TABLE Issue...
-
Dodona I, LLC, invested $ 4 million in two securities offerings from Goldman, Sachs & Co. The investments were in collat-eralized debt obligations ( CDOs). Their value depended on residential...
-
Would the viewer perceive depth if the images being projected in Figure 29.40 were identical?
-
The total binding energy of 21H is 2.224 MeV. Use this information to compute the mass (in u) of a 2H nucleus from the known mass of the proton and the neutron.
-
6. Tommy Parker may have been involved in some unsavory activities as an officer in a failed savings and loan institution. A federal agency, the Office of Thrift Supervision (OTS), ordered Tommy not...
-
Kasten Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls....
-
SAYCO Company's petty cash fund is established in the amount of P2,500. Upon examination of the records, the petty cash funds contains currency and coins in the amount of P1,500 and receipts for...
-
Hotel Baroneii International is an international hospitality group that is present in more than 100 countries with 12 brands and 5000 plus properties. The group also has a strong loyalty membership...
-
In the UK initial public offerings of common stock are usually sold by an offer for sale. Mr. Bean has observed that on average these stocks are underpriced by about 9 percent and for some years has...
-
Why are the costs of debt issues less than those of equity issues? List the possible reasons.
-
Jordan Broadcasting Company is going public at $50 net per share to the company. There also are founding stockholders that are selling part of their shares at the same price. Prior to the offering,...
-
What are some of the assets of teams?
-
Name and describe some flexible-scheduling strate- gies. Why would a business use a flexible-scheduling strategy?
-
Explain Maslow's hierarchy of needs. Why is it important?
-
Discuss some of the job-design strategies mentioned in the chapter. How can managers use these to in- crease the motivation of shop-floor employees?
-
Explain why productivity is important to the organization or a nation. Include some steps that can be taken to improve productivity.
-
The auditors' report below was drafted by a staff accountant of Williams & Co., CPAs, at the completion of the audit of the financial statements of Lenz Corporation for the year ended March 31, 20X9....
-
For each of the following transactions, indicate whether it increases, decreases, or has no effect on the following financial ratios: current ratio, debt-to-equity ratio, profit margin ratio, and...
-
How is the commitment problem for government solved in a democracy and in an autocracy?
-
True or false? a. One of the first tasks of an LBOs financial manager is to pay down debt. b. Once an LBO or MBO goes private, it almost always stays private. c. Targets for LBOs in the 1980s tended...
-
What advantages have been claimed for public conglomerates?
-
List the disadvantages of traditional U.S. conglomerates.
-
2: Conduct an internal and an external audit Amend your planned marketing audit activities according to the complex, non-routine issue assigned to you by your assessor. If you are using your own...
-
package jsjf; import jsjf.exceptions.*; import java.util.Arrays; * An array implementation of a stack in which the * bottom of the stack is fixed at index 0. * * @author Java Foundations * @version...
-
All questions below pertain to material learned from the textbook (Chapter 8) and lectures.Please put all answers to the questions below in this document for grading. Please do NOT submit answers...
Study smarter with the SolutionInn App