Underwriting Analysis Quiz
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Questions and Answers

What percentage of shares were underwritten by Mr. Mahantesh?

  • 50%
  • 60%
  • 80% (correct)
  • 70%

How many shares did the public apply for?

  • 40,000 shares
  • 30,000 shares
  • 25,000 shares
  • 42,000 shares (correct)

What is the gross liability of Mr. Mahantesh?

  • ₹25,000
  • ₹50,000
  • ₹40,000 (correct)
  • ₹10,000

What is the total number of shares issued by D Sai & Company limited?

<p>50,000 shares (D)</p> Signup and view all the answers

What is the underwriter's liability attributable to Sai & Co.?

<p>₹10,000 (C)</p> Signup and view all the answers

Flashcards

Underwriter Liability

The percentage of shares an underwriter agrees to purchase if the public subscription falls short of the target.

Gross Liability

The total number of shares an underwriter is obligated to buy if all public applications are not received.

Public Subscription

The percentage of shares the company directly attempts to sell to the public.

Underwritten Shares

The difference between the total shares offered and the shares subscribed by the public.

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Underwriters Liability (in rupees)

The amount of money the underwriter must pay for the shares they are obligated to buy.

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