Question
An investment bank pays $23.50 per share for 3,000,000 shares of the KDO company. It then sells these shares to the public for $25. a.
An investment bank pays $23.50 per share for 3,000,000 shares of the KDO company. It then sells these shares to the public for $25.
a. (12.0 pts) How much money does KDO receive?
b. (12.0 pts) What is the investment bankers profit?
c. (8.0 pts) What is the stock price of KDO?
d. (8.0 pts) What is the commission paid to issue the stock?
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Intermediate Financial Theory
Authors: Jean-Pierre Danthine, John B. Donaldson
2nd Edition
0123693802, 978-0123693808
