Problem 10 10 A company goes public with an offering price of $19 There is a 7 percent underwriting spread There is also a 15 percent overallotment option The company is selling 25 million shares The underwriter fills orders for 28 75 million shares but has not exercised the overallotment option The stock drops to $23 How much would it cost the underwriter to cover the short position Do not round intermediate calculations Round your answer to the nearest dollar $ If the underwriter used all its profits from the short position to purchase shares, how many shares would it purchase (include the shares that must be purchased to cover the short position) Do not round in

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Problem 10 10 A company goes public with an offering price of $19  There is a 7 percent underwriting spread  There is also a 15 percent overallotment option  The company is selling 25 million shares  The underwriter fills orders for 28 75 million shares but has not exercised the overallotment option  The stock drops to $23  How much would it cost the underwriter to cover the short position  Do not round intermediate calculations  Round your answer to the nearest dollar  $ If the underwriter used all its profits from the short position to purchase shares, how many shares would it purchase (include the shares that must be purchased to cover the short position)  Do not round in

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Problem 10-10 A company goes public with an offering price of $19. There is a 7 percent underwriting spread. There is also a 15 percent

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