Calculate underwriters spread in percentage on stock issue

Assignment Help Financial Econometrics

Reference no: EM13336116

DiPitro's Paint and Wallpaper, Inc., needs to raise $2.870 million to finance plant expansion. In discussions with its investment bank, DiPitro's learns that the bankers recommend a gross price of $44 per share and that 70,000 shares of stock be sold. The net proceeds on the stock sale leaves DiPitro's with $2.870 million.

Calculate the underwriter's spread in dollars per share on the stock issue.

Calculate the underwriter's spread in percentage on the stock issue.

Reference no: EM13336116

Questions Cloud

An nse trading member for a deal in government securities : What is the maximum brokerage that can be charged by an NSE trading member for a deal in government securities for Rs. 5 crores?

Evaluate the standard cell potential at 25 degrees celsius : Calculate the standard cell potential at 25 degrees celsius for the reaction X(s)+2Y+(aq) -> X^2+(aq)+2Y(s) where delta H = -733 kJ and delta S = -279 J/K Express your answer to three significant figures and include the appropriate units.

Information is available on stewart enterprises : There are three partners in Stewart Enterprises: Stewart, Tedder and Armstrong. At the end of the year, the partners' capital accounts were in the ratio of 2:1:2, respectively. Compute the ending capital balances of the three partners.

Define the standard cell potential for the reaction : Calculate the standard cell potential (E) for the reaction X(s)+Y+(aq) -> X+(aq)+Y(s) if K = 5.33 x 10^-3. Express your answer to three significant figures and include the appropriate units.

Calculate underwriters spread in percentage on stock issue : In discussions with its investment bank, DiPitro's learns that the bankers recommend a gross price of $44 per share and that 70,000 shares of stock be sold. The net proceeds on the stock sale leaves DiPitro's with $2.870 million.

Determine the resistive force the weed exerts on weed puller : A gardener is using a tool as shown in the figure to pull weeds. You will notice that the tool is designed with a built in pivot point about which the torques are applied

Calculate the income tax payable for 2013 : Migor Company (MC)-a Canadian company whose shares trade on a Canadian stock exchange-designs and builds custom-ordered precision machinery. MC is a publicly accountable enterprise adhering to IFRS. Its 2013 income statement will report "Incom..

Explain what is the standard potential e cell : What is the standard potential, E cell, for this galvanic cell? Express your answer to four significant figures and include the appropriate units.

Create a separate test directory : Use jUnit to write thorough unit tests for the Phone and Employee classes. Do not put test code in the src directory, instead, create a separate test directory.

User Account

All Pages