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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Ambry Inc. is going to use an underwriter to sell its preferred stock. Four underwriters have given estimates (below) on their fees and the selling price of the stock, as well as the expected dividend for each:
| Â |
Fees |
Selling Price |
Dividends |
|
Underwriter 1 |
$5 |
$101 |
$10 |
|
Underwriter 2 |
7 |
102 |
11 |
|
Underwriter 3 |
3 |
97 |
7 |
|
Underwriter 4 |
3 |
98 |
8 |
Which underwriter will produce the lowest cost of funds for the preferred stock?
A.   Underwriter 1.             B.   Underwriter 2.         C.   Underwriter 3.         D.   Underwriter 4.
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