Question
A company needs to raise $30 million (this is the gross amount required by the company) from a share offering. The shares are underwritten at
A company needs to raise $30 million (this is the gross amount required by the company) from a share offering. The shares are underwritten at a fee of 6.5% of the total amount raised. The underwriter offers best-effort underwriting. Answer the following questions ignoring all other costs in the share offering.
Round your answer to the nearest dollar. Do not include the $ symbol. Do not use comma separators. E.g. 123456.
- If the company receives subscription for 100% of the total shares offered, calculate how much the company would receive from the share offering.
The company would receive $Answer.
- If the company only receives subscription for 96% of the total shares offered, calculate how much the company would receive from the share offering.
The company would receive $Answer.
- If the company only receives subscriptions for 96% of the total shares offered, calculate how much the underwriter would receive from the share offering.
The underwriter would receive $Answer
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The Municipal Budget Crunch A Handbook For Professionals
Authors: Roger L. Kemp
1st Edition
0786463740, 978-0786463749
