博迪_投资学第九版_英文答案(18)

博迪_投资学第九版_英文答案

17. The proceeds from the short sale (net of commission) were: ($21 × 100) – $50 = $2,050

A dividend payment of $200 was withdrawn from the account.

Covering the short sale at $15 per share costs (with commission): $1,500 + $50 = $1,550

Therefore, the value of your account is equal to the net profit on the transaction:

$2,050 – $200 – $1,550 = $300

Note that your profit ($300) equals (100 shares × profit per share of $3). Your net proceeds per share was:

$21 selling price of stock

–$15 repurchase price of stock

–$ 2 dividend per share 2 trades × $0.50 commission per share $ 3

CFA PROBLEMS

1. a. In addition to the explicit fees of $70,000, FBN appears to have paid an

implicit price in underpricing of the IPO. The underpricing is $3 per share, or a total of $300,000, implying total costs of $370,000.

b. No. The underwriters do not capture the part of the costs corresponding

to the underpricing. The underpricing may be a rational marketing

strategy. Without it, the underwriters would need to spend more

resources in order to place the issue with the public. The underwriters

would then need to charge higher explicit fees to the issuing firm. The

issuing firm may be just as well off paying the implicit issuance cost

represented by the underpricing.

2. (d) The broker will sell, at current market price, after the first transaction at

$55 or less.

3. (d)