Vidyalelo
Management · Q616

International Finance and Treasury

Graduate and Post Graduate · Management · question 616

Q616

Under writer spread is 47500 and gross proceeds are 34000 then net proceeds are

A.
$13,500
Answer
B.
$81,500
C.
$47,500.00
D.
$34,000

Answer: Option A

Solution

Answer: Option A
Solution:
Net proceeds = Under writer spread - Gross proceeds
= 34000 = $13,500.