1. Company A sold 100,000 shares in an initial public offering. The underwriter's explicit fees were...

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1. Company A sold 100,000 shares in an initial public offering. The underwriter's explicit fees were...

1. Company A sold 100,000 shares in an initial public offering. The underwriter's explicit fees were $90,000. The offering price for the shares was $30, but immediately upon issue, the share price jumped to $43. What is the net proceeds this company receives from this offering?

2. If you are pessimistic about stock A and its market price is $100/share. You short sell 1,000 shares. Suppose the stock A price falls to $70/share. You close your position and what is your profit?

3. A bond has a total five years maturity and has been there for two years since issuance. What should be its price as of now?

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Answer 1

Answer #1

1

Net proceeds = offer price*shares-fees = 30*100000-90000

=

2910000

Please ask remaining parts seperately, questions are unrelated

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Answer 2

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