Look at the illustrative new-issue prospectus.

a. Is this issue a primary offering, a secondary offering, or both? b. What are the direct costs of the issue as a percentage of the total proceeds? (Do not round intermediate calculations. Enter your answer as a whole percent.) c. Are these direct costs more than the average for an issue of this size? d. Suppose that on the first day of trading the price of Hotch Pot stock is $15 a share. What are the total costs of the issue as a percentage of the market price? (Do not round intermediate calculations. Enter your answer as a whole percent.) e. After paying her share of the expenses, how much will the firms president, Emma Lucullus, receive from the sale? (Do not round intermediate calculations. Enter your answer in dollars not millions.) f. What will be the value of the shares that Emma Lucullus retains in the company? (Enter your answer in dollars not millions.)

FIRST PAGES Chap 5 Haw Corporation Baie Vanture Capital Secure 461 APPENDIX Hotch Pot's New-Issue Prospectus Prospectus Conexe Suck (Sol par le of the sono al Comme Sackofund baby, banheingold by the Com pany and 0.000s an being sold by the Sling Scholl See Tricipal and Selling Sader"The Company will always the proceed to take a darebytes Be the offering the bus plures Suck. These wurde ta" THESE SECURITIES HAVE NOT BEEN ATTROVED OR DESAPTROVED BY THE SECE. RITIES AND RECHANGE COMMISSION NOR HAS THE COMMISSION PASSED ON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY BACRIMINALOPTICE Underweg Precede Precede Price table Discount Company Show Perhe $12.00 S1030 $10.90 S.GOO. S100.000 $5.350.000 52.210.000 way The Cock, Bject priesak, when and I lived and accupad by as tatrariars and teaalaai as by trant and yani Company and the Selle Santos. The area are the right to withdra, came medy achour and acted in whole or is par Si Pichine April 2010 No para la haam aatharinil in pine any atura , tamil tamin, In cate with nd in as haps, , , har preciso descas kref any concert med curities which also a pre in any jnidaar was the unit. Th datinary at hasan time does serpylus indication has comecta ay time to IN CONNECTION WITH THIS CONTERING, THE UNIVERWRITER MAY OVERALLOT OR RECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE COMMON STOCK OF THE COMPANY AT A LEVE ABOVE THAT WILCHSCHT OTHERWISE PREVAIL IN THE OPEN MARKET. SECHSTABILIZING F COMMENCER, MAY BE DISCONTINUED AT ANY TIME Prospectus Summary Thelithaales or calciuretiary by the analind lature- sie www.glow in the Prep The Company Hech. Po latachale of 140 food in the bed Sassou ing welcomes the | FIRST PAGES 462 Puto Francie The Cow Stacked by the Company Cuckold by the Selling Stockholders. Comme Sacs banding after this 500m : aries or art a paris spil The Company Hecho caresachula 140 Geodud ini, Parybamia wadhi. Those peculiaring combined wig dicho The Coway as and a lawan in 2009 Use of Proceeds The Copyland te www.prekes Cow Stack www.dailymotion provided on peal. It has display the specade of the Bering for any other item Dividend Policy The Company has paid cahiddels Com Sudad de amicitur de unds will be paid the Comme Stuck in the face fare Certain Factors Inventate Cance Seckinvaivaa high degree of risk. The allowing facanduld be aathmad in carelease this Carmapury SUBSTANTIAL CAPITAL NEEDS The Company will require maling continue les espadas policy The Company lives the relation with sides a good be COMPETITION This is with a watches ut food Many of the caput a shotiy bayer wad beer capiland to the Capitalization The legileats are beaudio Copy of December 31, 2015, las dolci te oleod. thus Comics by the Company As AG In thousand Longuee Schaquity Common och-5.01 pr. 2.000.000 standing 2.000.000 ding wadud Perica capital 1670 7215 Retained aming 2200 2200 SS 200 SIE Tosca SI Selected Financial Data IT Preparada cara ] FIRST PAGES - Has Carpermanekan are thereas Management's Analysis of Results of Operations and Financial Condition Rennes growth is the year anded December 31, 2018, med fire the opening af raste the Companies op maandage dem, , repete with custard Sale per cuceridy scribed the pre- During the year the Company hermode Frans buksan arts of shore Business Hecho con a chale 140 dels inicis, salvanis und There pared in the regional cours and team and Garde del maram Management The silaring uties amidarth easierarian ragate the Carpany'stress, nainalan, by employee Name Cam Lucu Ed Lucullus Position President, Chief Cucutive Office and Director Treasure and Director 2 Lacalcide Companyia 2009 and has been tive Office that Lacalles has been played by the Company de 2002 Executive Compensation m aere | The table to che companies paid far niended the year 2015 by Capady Goth Caption Cinem Lucullus President and Chief acute Cicer $120.000 Ed Lucillus Certain Transactions As various mes ben 29 and 2015, Cookham Varandalus million in the Company coctice with the Column Part was care right to wider the Securities Act, adding the share atramaana Sairagiamalai Campages with the sacarittariutures Principal and Selling Stockholders The fare his ass ah ah aturation at the thamaraipatie Camp - wy'r Cwm Sack as of the app by Cleach by the Com paya he is thafetart 5 tig Carea, learanaar of the Copy she will was die Skecherie indicand, each waha oladi FIRST PAGES Nawet Beneficia w mucus Educa F C Hermione Star Canaletails ShareBanatically Owned prior to Owned we Number Percent De Sald Humbe Percent 400 000 26.000 275.000 120 400.00022 25.000 275.000 129 1.700.000 667 250000 60.000 200.000 O Lock-Up Agreements The haila miscarnant lam agamat with the transit phalge, aiaries phase is the paran, as a pariat or no age aler is dans le respects with the price of Shomach Description of Capital Stock The Companhia copil.code 10.000.000 von Sack As of the dose of this respect, there are folders of the Care Stack There come the Company, the Company way pay card dende o Con Sandkampfes et prate without the wine.com of the most Underwriting Subject to the us and condition for in the Underwring A..., deri Shu Pichinchas de Casting Sales 0,000Comen Suck Saw a thinage 2 al tip - asiries, as paren, ts peopes for day, the the compus and the market prices ac ria teria in hatea diara tarah Carey Legal Matters The validity of the Cuckold by the respect is being puede Company by And Place the new by S. Legal Proceedings Haward in dwyiei de la cod by a is alkapatams Campany's last ganthi hai. The Carray takesarea tea tamina Experts The wind fails of the Company have house included in reliance the uporte perbanding the best of the filmas sport Financial Statements | FIRST PAGES Chap 5 Haw Corporation Baie Vanture Capital Secure 461 APPENDIX Hotch Pot's New-Issue Prospectus Prospectus Conexe Suck (Sol par le of the sono al Comme Sackofund baby, banheingold by the Com pany and 0.000s an being sold by the Sling Scholl See Tricipal and Selling Sader"The Company will always the proceed to take a darebytes Be the offering the bus plures Suck. These wurde ta" THESE SECURITIES HAVE NOT BEEN ATTROVED OR DESAPTROVED BY THE SECE. RITIES AND RECHANGE COMMISSION NOR HAS THE COMMISSION PASSED ON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY BACRIMINALOPTICE Underweg Precede Precede Price table Discount Company Show Perhe $12.00 S1030 $10.90 S.GOO. S100.000 $5.350.000 52.210.000 way The Cock, Bject priesak, when and I lived and accupad by as tatrariars and teaalaai as by trant and yani Company and the Selle Santos. The area are the right to withdra, came medy achour and acted in whole or is par Si Pichine April 2010 No para la haam aatharinil in pine any atura , tamil tamin, In cate with nd in as haps, , , har preciso descas kref any concert med curities which also a pre in any jnidaar was the unit. Th datinary at hasan time does serpylus indication has comecta ay time to IN CONNECTION WITH THIS CONTERING, THE UNIVERWRITER MAY OVERALLOT OR RECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE COMMON STOCK OF THE COMPANY AT A LEVE ABOVE THAT WILCHSCHT OTHERWISE PREVAIL IN THE OPEN MARKET. SECHSTABILIZING F COMMENCER, MAY BE DISCONTINUED AT ANY TIME Prospectus Summary Thelithaales or calciuretiary by the analind lature- sie www.glow in the Prep The Company Hech. Po latachale of 140 food in the bed Sassou ing welcomes the | FIRST PAGES 462 Puto Francie The Cow Stacked by the Company Cuckold by the Selling Stockholders. Comme Sacs banding after this 500m : aries or art a paris spil The Company Hecho caresachula 140 Geodud ini, Parybamia wadhi. Those peculiaring combined wig dicho The Coway as and a lawan in 2009 Use of Proceeds The Copyland te www.prekes Cow Stack www.dailymotion provided on peal. It has display the specade of the Bering for any other item Dividend Policy The Company has paid cahiddels Com Sudad de amicitur de unds will be paid the Comme Stuck in the face fare Certain Factors Inventate Cance Seckinvaivaa high degree of risk. The allowing facanduld be aathmad in carelease this Carmapury SUBSTANTIAL CAPITAL NEEDS The Company will require maling continue les espadas policy The Company lives the relation with sides a good be COMPETITION This is with a watches ut food Many of the caput a shotiy bayer wad beer capiland to the Capitalization The legileats are beaudio Copy of December 31, 2015, las dolci te oleod. thus Comics by the Company As AG In thousand Longuee Schaquity Common och-5.01 pr. 2.000.000 standing 2.000.000 ding wadud Perica capital 1670 7215 Retained aming 2200 2200 SS 200 SIE Tosca SI Selected Financial Data IT Preparada cara ] FIRST PAGES - Has Carpermanekan are thereas Management's Analysis of Results of Operations and Financial Condition Rennes growth is the year anded December 31, 2018, med fire the opening af raste the Companies op maandage dem, , repete with custard Sale per cuceridy scribed the pre- During the year the Company hermode Frans buksan arts of shore Business Hecho con a chale 140 dels inicis, salvanis und There pared in the regional cours and team and Garde del maram Management The silaring uties amidarth easierarian ragate the Carpany'stress, nainalan, by employee Name Cam Lucu Ed Lucullus Position President, Chief Cucutive Office and Director Treasure and Director 2 Lacalcide Companyia 2009 and has been tive Office that Lacalles has been played by the Company de 2002 Executive Compensation m aere | The table to che companies paid far niended the year 2015 by Capady Goth Caption Cinem Lucullus President and Chief acute Cicer $120.000 Ed Lucillus Certain Transactions As various mes ben 29 and 2015, Cookham Varandalus million in the Company coctice with the Column Part was care right to wider the Securities Act, adding the share atramaana Sairagiamalai Campages with the sacarittariutures Principal and Selling Stockholders The fare his ass ah ah aturation at the thamaraipatie Camp - wy'r Cwm Sack as of the app by Cleach by the Com paya he is thafetart 5 tig Carea, learanaar of the Copy she will was die Skecherie indicand, each waha oladi FIRST PAGES Nawet Beneficia w mucus Educa F C Hermione Star Canaletails ShareBanatically Owned prior to Owned we Number Percent De Sald Humbe Percent 400 000 26.000 275.000 120 400.00022 25.000 275.000 129 1.700.000 667 250000 60.000 200.000 O Lock-Up Agreements The haila miscarnant lam agamat with the transit phalge, aiaries phase is the paran, as a pariat or no age aler is dans le respects with the price of Shomach Description of Capital Stock The Companhia copil.code 10.000.000 von Sack As of the dose of this respect, there are folders of the Care Stack There come the Company, the Company way pay card dende o Con Sandkampfes et prate without the wine.com of the most Underwriting Subject to the us and condition for in the Underwring A..., deri Shu Pichinchas de Casting Sales 0,000Comen Suck Saw a thinage 2 al tip - asiries, as paren, ts peopes for day, the the compus and the market prices ac ria teria in hatea diara tarah Carey Legal Matters The validity of the Cuckold by the respect is being puede Company by And Place the new by S. Legal Proceedings Haward in dwyiei de la cod by a is alkapatams Campany's last ganthi hai. The Carray takesarea tea tamina Experts The wind fails of the Company have house included in reliance the uporte perbanding the best of the filmas sport Financial Statements |