Question
Barnegat Light sold 200,000 shares in an initial public offering. The underwriter's explicit fees were $70,000. The offering price for the shares was $40, but
Barnegat Light sold 200,000 shares in an initial public offering. The underwriter's explicit fees were $70,000. The offering price for the shares was $40, but immediately upon issue, the share price jumped to $50. What is the best estimate of the total cost to Barnegat Light of the equity issue?
Multiple Choice
$1,930,000
$70,000
$2,000,000
$2,070,000
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Options Trading For Beginners
Authors: Mike Hartley
1st Edition
979-8864514832
