N8

LITIS QUESTION, A IIIITS IPO Issue had a bid price of $20 and an ask of $28. The firm issued 1.5 million shares. Other direct expenses of the issue were 2.4% of the gross proceeds. For this issue size the firm's IPO had a spread average and total direct costs than average. (Watch your rounding) TABLE 15.5 Proceeds Number Gross Other Total Direct and indirect ($ in millions) of Issues Spread Direct Expense Direct Cost Underpricing costs, In 2- 9.99 624 9.15 6.21% 15.36% 15.18% percentages, of 10- 19.99 704 7:33 4 30 11.63 10.02 equity IPOT 20- 39.94 1,336 6.90 2.82 9.81 17.91 1990-2003 40- 59.90 771 2.25 9.21 29.57 60- 79.90 1.77 8.65 39 20 80- 90 90 245 6.79 155 8.34 45.36 100-199-90 438 1.10 7.67 37.10 197 081 6.72 17.12 500 and up 72 4.46 0.49 5.15 12.19 Total 4.790 7.17 3.22 10.32 23.55 a, greater than; less than O b. greater than; greater than O c. less than; greater than O d. less than; less than 17:19 O e. equal to; equal toLITIS QUESTION, A IIIITS IPO Issue had a bid price of $20 and an ask of $28. The firm issued 1.5 million shares. Other direct expenses of the issue were 2.4% of the gross proceeds. For this issue size the firm's IPO had a spread average and total direct costs than average. (Watch your rounding) TABLE 15.5 Proceeds Number Gross Other Total Direct and indirect ($ in millions) of Issues Spread Direct Expense Direct Cost Underpricing costs, In 2- 9.99 624 9.15 6.21% 15.36% 15.18% percentages, of 10- 19.99 704 7:33 4 30 11.63 10.02 equity IPOT 20- 39.94 1,336 6.90 2.82 9.81 17.91 1990-2003 40- 59.90 771 2.25 9.21 29.57 60- 79.90 1.77 8.65 39 20 80- 90 90 245 6.79 155 8.34 45.36 100-199-90 438 1.10 7.67 37.10 197 081 6.72 17.12 500 and up 72 4.46 0.49 5.15 12.19 Total 4.790 7.17 3.22 10.32 23.55 a, greater than; less than O b. greater than; greater than O c. less than; greater than O d. less than; less than 17:19 O e. equal to; equal to