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QUESTION 11 Which of the following factors can underwriters use in determining the spread of a new issue? 1 Earnings of the corporation 11. A

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QUESTION 11 Which of the following factors can underwriters use in determining the spread of a new issue? 1 Earnings of the corporation 11. A comparison to other companies in the same industry Il Market conditions IV Past dividends paid by the corporation O I, I, I, and IV L and in I and Ill ILI and IV QUESTION 12 A company is offering 5.000.000 new shares to the public. The shares are being sold to a syndicate for 512 and are being reoffered to the public at $13. The compensation to the underwriters for each share sold is $0.75 The selling group receives $0 30 a share for each share it solls, and the managing underwater retains 50 25 in fees for each share sold by anybody. The selling group will assist in selling 1.000.000 out of the 5.000.000 shares offered the entire offering is sold how much does the managing underwater retain in fees for the services? O $1.250.000 $2.500.000 O $4.000.000 55.000.000

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