An investment bank pays $ 33.50 per share for 4 million shares of GM Company in a firm commitment stock offering. It then can sell those shares to the public for $ 32 per share. How much money does GM receive? What is the profit to the investment bank? What is the stock price of GM?
Answer to relevant QuestionsThe MEP Company has issued 5,000,000 new shares. Its investment bank agrees to underwrite these shares on a best efforts basis. The investment bank is able to sell 4,200,000 shares for $ 54 per share. It charges MEP $ 1.25 ...What are long-term mutual funds? In what assets do these funds usually invest? What factors caused the strong growth in this type of fund during the 1990s and the decline in growth in the early and late 2000s?What is the difference between an open-end mutual fund and an ETF closed-end fund? What is the difference between an open-end mutual fund and a unit investment trust?Discuss the improper trading abuses and improper assignment of fees for which mutual funds were prosecuted in the early 2000s.Open-end Fund A has 165 shares of ATT valued at $ 35 each and 50 shares of Toro valued at $ 45 each. Closed-end Fund B has 75 shares of ATT and 100 shares of Toro. Both funds have 1,000 shares outstanding. a. What is the NAV ...
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