What is profit to the investment bank

Assignment Help Financial Management
Reference no: EM131553950

An investment bank pays $35.00 per share for 4.5 million shares of GM Company in a firm commitment stock offering. It then can sell those shares to the public for $34 per share. a. How much money does GM receive? (Enter your answer in dollars not in millions.) Amount received by GM $ b. What is the profit to the investment bank? (Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign. Do not round intermediate calculations.) Profit to the investment bank $ c. What is the stock price of GM? Stock price of GM $

Reference no: EM131553950

Questions Cloud

Company capital structure weights on market value basis : What are the company's capital structure weights on a book value basis? What are the company’s capital structure weights on a market value basis?
Would dean benefit from high inflation or low inflation : Also, Dean has a substantial amount of money saved up. Would Dean benefit from high inflation or low inflation? Explain your answer.
What is the expected return on a portfolio : What is the expected return on a portfolio that is equally invested in the two assets?
Increasing the minimum wage : There are those that are for increasing the minimum wage. Many fast food workers would like to see it increase to 15 dollars per hour.
What is profit to the investment bank : It then can sell those shares to the public for $34 per share. How much money does GM receive? What is the profit to the investment bank?
Production chain for economy is characterized by transaction : Assume the production chain for an economy is characterized by the following transactions: Compare the revenue received from a 10% VAT to a 10% RST.
Reinvests the annual returns paid on the investment : If the investor reinvests the annual returns paid on the investment, calculate the annual return on the mutual funds over the two-year investment period.
How much money does xyz receive after commission : What is the profit to the investment bank? How much money does XYZ receive after commission?
What is the net rate of return from investment : An investor purchases a mutual fund share for $100. What is the net rate of return from this investment?

Reviews

Write a Review

Financial Management Questions & Answers

  Essential elements be addressed before exercising an option

The FAR mandates that essential elements be addressed before exercising an Option. Discuss some of the reasons, restrictions and consequences that the essential elements may not be addressed as provided for under the Contract Award. Reference FAR Cla..

  Best states the primary goal of financial management

Which one of the following best states the primary goal of financial management

  What is the direct forward quote

Suppose the 90-day forward quotes on the Euro and the Danish kroner are $ 0.4002-10 and $0.1180-90, respectively. What is the direct 90-day forward quote for the kroner Frankfurt?

  Compute total dollar interest payments for the six months

Compute total dollar interest payments for the six months.

  Returns data for creations and buildings

Assume that your cousin holds just one stock, Eastman Chemical Bonding (ECB), which he thinks has very little risk. You agree that the stock is relatively safe, but you want to demonstrate that his risk would be even lower if he were more diversified..

  How much will you have if you make deposits

You deposit $1,400 at the end of each year into an account paying 8.6 percent interest. Required: (a) How much money will you have in the account in 19 years? (b) How much will you have if you make deposits for 38 years?

  What transaction should you do

You hold a stock portfolio worth $15 million with a beta of 1.05. What transaction should you do?

  Company purchases a combination of the three bonds

The insurance company purchases a combination of the following three bonds at a total cost of X in order to match its obligation:

  Market believe will be the stock price at end of three year

Crisp Cookware's common stock is expected to pay a dividend of $2.75 a share at the end of this year (D1 = $2.75); its beta is 0.95; the risk-free rate is 2.7%; and the market risk premium is 6%. The dividend is expected to grow at some constant rate..

  What is maximum price the acquirer should be willing to pay

A sporting goods manufacturer has decided to expand into another related business. Management has estimated that to build and staff a facility of the desired size would cost $450 million in present value terms. Using a tax rate of 34%, what is the mi..

  What is the rate of growth of its dividend

Turnips and Parsely common stock sells for $39.86 a share at a market rate of return of 9.5%. The company just paid its annual dividend of $1.20. What is the rate of growth of its dividend? What is the growth rate of the company?

  Calculate the savings in financing costs from lockbox system

A firm has arranged for a lockbox system to reduce collection time of accounts receivable. Currently the firm has an average collection period of 43 days, an average age of inventory of 50 days, and an average payment period of 10 days. Calculate the..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd