1. FBN, Inc., has just sold 100,000 shares in an initial public offering. The underwriters explicit fees...

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1. FBN, Inc., has just sold 100,000 shares in an initial public offering. The underwriter’s explicit fees were $70,000. The offering price for the shares was $50, but immediately upon issue, the share price jumped to $53.

a. What is your best guess as to the total cost to FBN of the equity issue?

b. Is the entire cost of the underwriting a source of profit to the underwriters?

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Investments

ISBN: 9780077261450

8th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: Jul 23, 2024 11:02 AM

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1. FBN, Inc., has just sold 100,000 shares in an initial public offering. The underwriters explicit fees...

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Investments

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