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1.Trump Holdings is a real estate company that purchases golf courses and clubhouses. The company has $16 million in earnings and plans to issue 15

1.Trump Holdings is a real estate company that purchases golf courses and clubhouses. The company has $16 million in earnings and plans to issue 15 million shares. Investment bankers think they can justify a price earnings ratio of 15. If the underwriting spread is 5% .

a.What should the price to the public be?

b.What would the firm net? What would the investment dealers net?

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