Question
With a firm commitment underwriting, an investment bank agrees to sell 2 million shares to the public at $10 per share with a spread of
With a firm commitment underwriting, an investment bank agrees to sell 2 million shares to the public at $10 per share with a spread of $1.00. How much does the issuing company receive if only 1.5 million shares are sold?
I know that the answer is $18.0 million, but I do not know how to get the answer.
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Bond Markets Analysis And Strategies
Authors: Frank J. Fabozzi
6th Edition
0131986430, 9780131986435
