Bavarian Brewhouse is planning on going public.Under the underwriting agreement the underwriting discount is $1.25 per share.If the offering price of the stock is set at $12.50 per share,what is the percentage underwriting discount?

Name: Bavarian Brewhouse is planning on going public.Under the underwriting agreement the underwriting discount is $1.25 per share.If the offering price of the stock is set at $12.50 per share,what is the percentage underwriting discount?
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Quizplus · Accepted Answer

$1.25/$12.50 = .10

Bavarian Brewhouse Is Planning on Going Public