1. If a new stock offering were overpriced but could be sold, then the:
a. Existing shareholders would benefit.
b. New investors would gain at the expense of the existing shareholders
c. Fire could avoid the underwriting spread.
d. Firm could avoid the SEC filing.
2. Consider the information in the table above. What is the rate of return the investor would earn on the additional funds invested in renovating the property, assuming that the investor would not borrow any additional funds? (A)
6.0%
106%
$15,000
$265,000