An underwriter sells 2 million shares of stock to the public at $40 per share.The issuing firm receives $73 million before non-underwriting costs.
A) The underwriter's spread was 2.14%.
B) The underwriter's spread was $40.
C) The underwriter's spread was 8.75%.
D) The underwriter's spread was 9.59%.
Correct Answer:
Verified
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