What will be its percentage return

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Reference no: EM132793502

Question - Henderson and company is the managing investment dealer for a major new underwriting. The prices of the stock to various participants are listed below.

Investment dealer $19.50

Other syndicate members $19.80

Selected dealer group $20.10

Brokers $20.50

Public $20.85

Required -

a) If Henderson and Company sells its shares to the dealer group, what will be the percentage return?

b) If one of the other syndicate members performs the dealers function also and sell to brokers, what will be its percentage return?

c) If Henderson and Company fully integrates its operations and sells directly to the public, what will be its percentage return?

d) Why might Henderson and Company not want to proceed?

Reference no: EM132793502

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