Assume the issuer incurs $1 million in other expenses to sell 3 million shares at $40 each to an underwriter and the underwriter sells the shares at $43 each. By the end of the first day's trading, the issuing company's stock price had risen to $70. What is the total cost (direct expenses plus underpricing cost)?
A. 81 million
B. 91 million
C. 101 million
D. 111 million
Ans: B. 91 million
Business
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a. true b. false
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For property-casualty insurers, loss rates are more predictable for
A. low-severity high-frequency events. B. low-severity low-frequency events. C. high-severity high-frequency events. D. high severity low-frequency events. E. low severity medium-frequency events.
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