Question
Highlander Homes stock trades at $30 per share and there are 50 million shares outstanding. The management would like to raise $300 million in an
Highlander Homes stock trades at $30 per share and there are 50 million shares outstanding. The management would like to raise $300 million in an SEO. If the underwriter charges 2% of gross proceeds, all other cost is $10 million and all the shares are primary shares sold to new investors, then
1.What is the underwriting spread per share?
2.What is the underpricing?
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Business And Personal Finance
Authors: McGraw-Hill
1st Edition
0078945801, 9780078945809
