Underwriting Return

Walton Inc. is the managing investment dealer for a major new underwriting. The price of the stock to the investment dealer is $$18$ per share.

Other syndicate members may buy at $$18\mathrm{.}25.$ The price to the selected dealer group is $$18\mathrm{.}80,$ with a price to the brokers of $$19\mathrm{.}20.$ The price to the public is $$19\mathrm{.}50.$

a$.$ If Walton sells its shares to the dealer group, what will be the percentage return?

b$.$ If Walton performs the dealers' function also and sells to brokers, what will be its percentage return?

c$.$ If Walton fully integrates its operation and sells directly to the public, what will be its percentage return?

Percentage Return $=$

Percentage Return $=$

Percentage Return $=$