[kevinpride]

NINJA Question –

The solution for Question 393 Category 3C1 Capital structure about Williams Inc’s cost of funds from the sale of common stock shows both variables PO and u as the “Dollar amount of underpricing per share from the market price needed to sell the new issue”. But PO is 100 and u is 3. How can the definition be the same but the number be different? I hope I am misreading the definition for one of the. Jeff, can you help clarify this? I love how the ninja MCQ works, it’s affordable too.

FAR 86 (02/27/2016)
BEC 81 (04/30/2016)
AUD 81 (06/05/2016)
REG ?? (08/27/2016)