ABC, Inc. has just sold 100,000 shares in an IPO. The underwriter's fees were $60,000. The offering

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"ABC", Inc. has just sold 100,000 shares in an IPO. The underwriter's fees were $60,000. The offering price for the share was $40 but immediately after the issue, the share price jumped to $44.

a- what is your estimate of the total cost of the equity issue to "ABC"?

b- Is the entire cost of the underwriting a source of profit to the underwriter?

Posted Date: May 19, 2024 10:15 PM

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ABC, Inc. has just sold 100,000 shares in an IPO. The underwriter's fees were $60,000. The offering

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