Wright Brothers, Inc., sold 4 million shares in its IPO, at a price of $18.50 per share.

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Management negotiated a fee (the underwriting spread) of 9% on this transaction.

What was the dollar cost of this fee?

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Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Question Posted: Feb 21, 2024 10:00 AM

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Wright Brothers, Inc., sold 4 million shares in its IPO, at a price of $18.50 per share.

Question:

Step by Step Answer:

The dollar cost of the underwriting spread can be calculated as follows ...View the full answer

Fundamentals Of Corporate Finance

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