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Question
Hollon Securities is underwriting an issue of Llamas Unlimited, Inc. common stock. Hollon will pay LU $45.00 a share and offer the stock to the public at $48.00. The direct cost of underwriting the issue is $1.00 per share. The underwriting spread isa. $4.00 per share.
b. $3.00 per share.
c. $2.00 per share.
d. not ascertainable from the information above.
Answer
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