Question

27 Ally's Sailboats has decided to take the common stock to the public. The firm has hired an underwriter who arranges a full commitment underwriting and suggests an initial selling price of $25 a share with a 5 percent gross spread. As it turns out, the underwriters only sell 97,400 shares. How much cash will Aaron's Sailboats receive ake the company public by offering a total of 120,000 shares of from its first public offering? A. $2,727,200 B. $2,435,000 C. $2,790,000 D. $2,850,000 E. $3,000,000 28. Miller Motors, Inc. has decided to sell 1,800 shares of stock through a Dutch auction. The bids received are as follows: Bidder Quantity Price $24 $23 $21 $20 $19 400 300 1,000 1,500 2,900 How much will Miller Motors receive in total from selling the 1,840 shares? Ignore all transaction and flotation costs. A. $30,400 B. $33,400 C. $36,000 D. S36,800 E. S38,640

For #28, its 1840 shares

Answer 1

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Home ert Page Layout Formulas Data Review V Add-Ins 義Cut Σ AutoSum , aCopy Format Painter Fill В า 프. m. a-Δ. Ξミ 迣锂函Merge & Center. $, % , 弼皛Conditional Format. Cell. Insert Delete Format Paste Sort &Find & 袖 2 Clear , Formatting ▼ as Table-styles ▼ Filter Select ▼ ▼ ▼ Clipboard Font Cells dting Alignment CH111 CH CK CM CN CI CJ CL cO CP CQ CR CS CT CU 112 FIRM COMMITMENT BASIS MEANS THE PROMISED PRICE IS TO BE PAID 113 SHARES SOLD 120000 114 25 PRICE 115 3000000 [120000 X 25] TOTAL VALUE OF SHARES SOLD 116 LESS: PAID TO UNDERWRITER 150000 3000000 x 596] 117 D NET AMOUNT RECEIVED BY COMPANY = 2850000 118 119 120 121 122 123 124 125 126 127 128 129 BANKING NOTE BİDDING UNDERWRITING EUAC AwPM LIFE LP IP MRP, INFLATION YIELD WARRAN Tr fund bond CLEAN INVOICE PRICE Sheet1 Sheet3 Shee " ‘ ト . 04:19 멎园遛 'will tQ m木6 ENG 22-05-2019

Home ert Page Layout Formulas Data Review V Add-Ins AutoSum 義Cut Fill Sort &Find & aCopy Format Painter ClearFilter Select Ξミ 迣锂函Merge & Center. $, % , 弼皛Conditional Format. Cell. Insert Delete Format Formatting as Table Styles В า 프. m. a-Δ. dting Cells Alignment Font Clipboard BR BH57 BQ BP BO BN BM BK BL BJ BH BG BF 43 CUMULATIVE DEMAND NUMBER OF SHARES PRICE 400 45 700 300 23 46 1700 1000 21 47 3200 HERE WE REACH A TARGET OF 1840 SHARES 1500 20 48 6100 2900 19 49 50 RULE OF BIDDING IS THAT PRICE OF $20 WILL BE APPLICABLE FOR ALL INVESTORS, THOUGH THEY MAY HAVE BID HIGHER PRICE 51 52 36800 1840 X 20 TOTAL AMOUNT RAISED = 53 54 56 57 58 59 60 61 Sheet1 Sheet3 Sheet4 CLEAN INVOICE PRICE WARRAN Tr fund bond LP IP MRP, INFLATION YIELD BANKING NOTE BİDDING UNDERWRITING EUAC Aw PM LIFE " ‘ ト . 멎园遛 .will tQm木6 ENG 22-05-2019