Answered

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drk, incorporated, has just sold 210,000 shares in an initial public offering. the underwriter’s explicit fees were $126,000. the offering price for the shares was $38, but immediately upon issue, the share price jumped to $40.50.

Sagot :

The total cost to DRK of the equity issue is 6,51,000. No, the entire cost of the underwriting is a source of profit for the underwriters.

In order to get final approval for your loan, your lender must first verify your income, assets, debt, and property information. This process is known as underwriting. A financial specialist known as an underwriter examines your financial situation and determines the level of risk that a lender will accept if they decide to grant you a loan.

For instance, a health insurance underwriter will examine medical information, whereas a loan underwriter will evaluate elements like credit history. The work of an underwriter is intricate. Based on their risk assessment, they must decide what is eligible for approval and what level of risk is acceptable.

Learn more about underwriters here:

https://brainly.com/question/16295218

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