Question
Problem 13.21 Deere and Bros. is a broker that brings new issues of small firms to the public market. Its most recent deal for Dextra,
Problem 13.21
Deere and Bros. is a broker that brings new issues of small firms to the public market. Its most recent deal for Dextra, Inc., had the following characteristics:
| Number of shares: | 1,000,000 | ||
| Proceeds to Dextra: | 13,260,000 | ||
| Price to public: | $16 | per share |
The legal fees were $152,000, printing costs were $58,000, and all the other expenses were $71,000. What is the profit or loss for Deere and Bros.?
| Profit / (Loss) | $ |
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International Financial Management
Authors: Jeff Madura
7th Edition
0324071744, 978-0324071740
