LaJolla Securities Inc. specializes in the underwriting of small companies. The terms of a recent offering were

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LaJolla Securities Inc. specializes in the underwriting of small companies. The terms of a recent offering were as follows:

Number of shares .. 3 million

Offering price ... $25 per share

Net proceeds ..... $35 million

LaJolla Securities’ expenses associated with the offering were $400,000.

Determine LaJolla Securities’ profit on the offering if the secondary market price of the shares immediately after the offering began were as follows:

a. $23 per share

b. $25 per share

c. $28 per share

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Introduction to Corporate Finance What Companies Do

ISBN: 978-1111222284

3rd edition

Authors: John Graham, Scott Smart

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Question Posted: May 14, 2012 01:15 AM

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LaJolla Securities Inc. specializes in the underwriting of small companies. The terms of a recent offering were

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Given information Number of shares 3000000 Offering price 25 Per share Total Authories common ...View the full answer

Introduction to Corporate Finance What Companies Do

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