User Account

All Pages

What is the underwriting cost

Assignment Help Finance Basics
Reference no: EM132015818

ABC Ltd issues a $30 million IPO providing proceeds to ABC of $4.5 per share, from an offer price to the public of $5 per share. The company's legal fees, ASIC registration fees, and other administrative costs are $376,000. The company's share price increases 14 per cent on the first day. What is the underwriting cost? (in millions of dollars to the nearest three decimal places)

Reference no: EM132015818

Questions Cloud

Explain how much do you gain or lose as of the close : At 11:00 am on October 25 you buy 10 more contracts for $245.5 ounce. At the close of trading on October 25, gold futures settle for $239.0 ounce.
What are the proceeds for the issuer : 8 million shares are issued. What are the proceeds for the issuer (in millions of dollars to the nearest three decimal places)?
How many shares does the company need to issue : How many shares does the company need to issue (in millions to three decimal places)? (Hint: required amount/(1-spread) = issue amount)
Identify the no-arbitrage 1-year forward rate : If interest rates are 5% APR in the U.S. and 3% APR in the euro zone, what is the no-arbitrage 1-year forward rate?
What is the underwriting cost : The company's share price increases 14 per cent on the first day. What is the underwriting cost? (in millions of dollars to the nearest three decimal places)
Calcuate the dollar amounts you need to put in each bond : Assuming you can find a three year zero with 6% rate of return, how muich money do you need to dedicate today in order to have $120 million in three years?
What is the total cost to the issuer of the ipo : The company's share price increases 9 per cent on the first day. What is the total cost to the issuer of the IPO
What price should quality data charge for each disk pack : What price should Quality Data charge for each disk pack if management believes the DVDs sell for 20 percent more than the CDs
What is the total amount of the underwriter spread : What is the total amount of the underwriter's spread (in millions of dollars to the nearest three decimal places)?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd