Question
In: Finance
DRK, Inc., has just sold 240,000 shares in an initial public offering. The underwriter’s explicit fees...
DRK, Inc., has just sold 240,000 shares in an initial public offering. The underwriter’s explicit fees were $144,000. The offering price for the shares was $32, but immediately upon issue, the share price jumped to $33.00.
a. What is the total cost to DRK of the equity issue?
| Total Cost | ________ |
b. Is the entire cost of the underwriting a source of profit to the underwriters?
___ Yes
___No
Solutions
jeff jeffy answered 1 month agoRelated Solutions
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Instructions - Use the numbers in the instructions...
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