Question : Week 2 Assignment Questions
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Week 2 Assignment Questions
Use a Cover Sheet, and. Upload to LiveText. Week 1 Assignment consists of four (4) questions from Chapter 2.
Chapter 3 Questions
A market order has:
Price uncertainty but not execution uncertainty.
Both price and execution uncertainty.
Execution uncertainty but not price uncertainty.
Briefly explain your choice.
ABC has just sold 100,000 shares in an initial public offering. The underwriter’s explicit fees were $70.000. The offering price for the shares was $50.00, but immediately upon issue, the price jumped to $53.00 a share.
What is your best guess to the total cost to ABC of the equity issue?
Is the entire cost of the underwriting a source of profit to the underwriters?
If you place a stop-loss order to sell 100 shares of stock at $55.00 when the current price is $62.00, how much will you receive for each share if the price drops to $50?
Cannot tell from the information given.
Chapter 4 Questions
The Open Fund is a closed-end investment company with a portfolio currently worth $200 million. It has liabilities of $3 million and 5 million shares outstanding.
What is the NAV of the fund?
If the fund sells for $36.00 a share, what is its premium or discount as a percent of net asset value?
The closed fund had average daily assets of $2.2 billion last year. The fund sold $400 million worth of stock and purchased $500 million during the year. What was it’s turnover ratio?