Question
a) NewCorp sold 180,000 shares in an initial public offering. The underwriter's explicit fees were $66,000. The offering price for the shares was $36, but
a) NewCorp sold 180,000 shares in an initial public offering. The underwriter's explicit fees were $66,000. The offering price for the shares was $36, but immediately upon issue, the share price jumped to $49. What is the best estimate of the total cost to Barnegat Light of the equity issue? (Hint: This was similar to a homework question)
| A. | $2,406,000 | |
| B. | $66,000 | |
| C. | $2,274,000 | |
| D. | $2,340,000 |
2) The NewOne Exchange lists a bid price of 11.33 and an ask price of 11.37 for Sunwing Energy Corporation. What is the dealers bid-ask spread?
| A. | .03 | |
| B. | .02 | |
| C. | 1.30 | |
| D. | .04 |
An investor buys a T-bill at a bank discount quote of 4.40 with 90 days to maturity for 9,890.00. The bill has a face value of $10,000. The investor's bond equivalent yield on this investment is _______.
| A. | 4.51%. | |
| B. | 4.45% | |
| C. | 4.68%. | |
| D. | 4.39% |
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Public Finance Fundamentals
Authors: K. Moeti
3rd Edition
148512946X, 9781485129462
