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please answer each part of the question, I will leave a good review. 4. Suppose Chan Inc., decided to go public. Goldman was selected as
please answer each part of the question, I will leave a good review.
4. Suppose Chan Inc., decided to go public. Goldman was selected as the investment bank (IB) for the IPO. The IB suggest an IPO price of $30 a share. The company issues 100,000,000 shares. The IB gets all the shares for 10% discount. The company also incurred $6 million in cost associated with the filings and compliance efforts. What is the costs for Chan Inc.? 5. A price-weighted index has 3 stocks: A, B and C. Their price at the start of the index was $35, $48 and $90. What is the initial divisor if the index start with a value of 100? By the end of the first year, the price of the 3 stocks is $40, $52 and $83 respectively. How much has the index gone up? If stock C has a 3-for-1 split, what would be the new index value after one year? 6. Look up the stock price for WBA and DOW, as well as the divisor value for DJIA in September, 2020. How would the divisor value changed if AMZN is to replace DOW and GOOG to replace WBAStep by Step Solution
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