Secondary Market Price of Each Share
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LaJolla Securitites Inc. specializes in the underwriting of small companies. The terms of a recent offering were as follows:
Number of shares 2 million
Offering Price $25 per share
Net proceeds $45 million
LaJolla Securities expenses, associated with the offering, were $500,000. Determine LaJolla Securities profit on the offering if, immediately after the offering began, the secondary market price of each share was as follows:
a. $23 per share
b. $25 per share
C. $28 per share
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Solution Summary
The solution determines the secondary market price of each share.
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The net proceeds is deducted as this is the amount remitted to the small companies ...
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