Finance: Bally IPO proceeds;duration of a Class B CMO
Not what you're looking for?
1) An investment banker agrees to a firm commitment offering of 1.2 million shares of Bally stock. The offer price is set at $25.50 and the spread is 30 cents per share. If the stock is actually sold to the public at $26.00, however, what is the amount of funds Bally receives? (Ignore any other fees or expenses.)
$31,200,000
$30,600,000
$30,240,000
$29,280,000
$28,120,000
2) A bank has DA = 2.4 years and DL = 0.9 years. The bank has total equity of $82 million and total assets of $850 million. Interest rates are at 6%.
- If interest rates increase 100 basis points the predicted dollar change in equity value will equal:
$10,171,698
-$10,171,698
$12,724,528
-$12,724,528
$4,928,756
3) The typical duration of a Class B CMO is
1.5-3 years
3-5 years
5-7 years
7-10 years
18-20 years
Purchase this Solution
Solution Summary
The solution answers questions related to Bally IPO proceeds; change in equity value based bank's duration of assets & duration of liabilities; duration of a Class B CMO.
Solution Preview
1 - Spread is difference between bid and ask price. Because the stock is sold @ $26 and ignoring fee/expenses. Bally would receives ...
Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Basics of corporate finance
These questions will test you on your knowledge of finance.