Q1. which one of the following statements is NOT ture?
A. The need for funding does not end when a company goes public.
B. Approval is obtained from the board of directors to issue securities.
C. The lowest-cost source of external funds is often an open offer to the public.
D. The investment bank decides how much money the company needs to raise and what type of security- such as debt, ordinary shares or preference shares - to issue.
Q2. A company issues a $47.2 million IPO providing proceeds to ABC of $5.31 per share, from an offer price to the public of $5.9 per share. The company's legal fees, ASIC registration fees, and other administrative costs are $164000. The company's share price increases 5.6 oercent on the first day. What is the total amount of the underwriter's spread?