Reference no: EM131360823
An offering for 2,000,000 shares of commons stock has the following profit distribution items: Takedown $2.00 Manager’s fee $0.50 Public offering price $30.00
1. What are the net proceeds to the issuer per share?
a. $28 b. $26.50 c. $27 d. $27.50
2. What is the spread?
a. $2 b. $2.50 c. $3 d. $3.50
3. If a non-managing member of the syndicate sells 100,000 shares, how much commission will that underwriter receive?
a. $200,000 b. $250,000 c. $30,000,000 d. $400,000
4. If the entire issue sells, how much will the managing underwriter receive in management fees?
a. 1 million b. $$500,000 c. $400,000 d. $250,000
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