Question
can you help me out with this? please answer both of them. 1. What are the costs incurred by a firm when it issues new
can you help me out with this? please answer both of them.
1. What are the costs incurred by a firm when it issues new securities through an investment bank, in the traditional firm commitment underwriting? What does it mean to say that a firm has "left money on the table"?
2. Suppose you bought 100 shares of Amazon at $3000 and in one year the price went to $3600. If you bought the shares on 50% margin, what was your one-year percent return? If you bought the shares for all cash, what was your one-year percent return? (Ignore commissions, interest, dividends, and taxes; and show your work). What is the leverage factor between the two results?
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