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ABC Co Ltd. issue 1,00,000 equity shares of 100 each MNO and P underwrites the entire issue in the proportion of 30%, 30%, 20% and 20% respectively. They also apply for firm share applications as follows. M-3,000 shares, N - 2,000 shares, O2,000 shares and P-3,000 shares. Asides the firm application, the public apply for 60,000 shares of which marked applications are as follows: M-10,000 shares, N-6,000 shares, 0-8,000 shares and P-16,000 shares.
Calculate the net liability and total liability of each underwriter treating:
i) Firm underwriting as marked applications.
ii) Firm underwriting as unmarked applications.?
Calculate the net liability and total liability of each underwriter treating:
i) Firm underwriting as marked applications.
ii) Firm underwriting as unmarked applications.?
Most Upvoted Answer
ABC Co Ltd. issue 1,00,000 equity shares of 100 each MNO and P underwr...
Firm Underwriting as Marked Applications
When firm applications are treated as marked applications, the total liability of each underwriter is calculated based on their underwriting ratio and their firm applications.
- Total Shares Issued: 100,000
- Underwriting Proportion:
- M: 30%
- N: 30%
- O: 20%
- P: 20%
- Firm Applications:
- M: 3,000 shares
- N: 2,000 shares
- O: 2,000 shares
- P: 3,000 shares
- Public Applications: 60,000 shares (Marked Applications)
- M: 10,000 shares
- N: 6,000 shares
- O: 8,000 shares
- P: 16,000 shares
Calculation of Total Liability:
- M: 30,000 (30% of 100,000) + 3,000 = 33,000
- N: 30,000 + 2,000 = 32,000
- O: 20,000 + 2,000 = 22,000
- P: 20,000 + 3,000 = 23,000
Net Liability Calculation:
- M: 33,000 - 10,000 = 23,000
- N: 32,000 - 6,000 = 26,000
- O: 22,000 - 8,000 = 14,000
- P: 23,000 - 16,000 = 7,000
Firm Underwriting as Unmarked Applications
When firm applications are treated as unmarked applications, the total liability is still based on the underwriting proportion, but the firm applications are not considered in the marked allocation.
Calculation of Total Liability:
- M: 30,000 + 3,000 = 33,000
- N: 30,000 + 2,000 = 32,000
- O: 20,000 + 2,000 = 22,000
- P: 20,000 + 3,000 = 23,000
Net Liability Calculation:
- M: 33,000 - 0 = 33,000
- N: 32,000 - 0 = 32,000
- O: 22,000 - 0 = 22,000
- P: 23,000 - 0 = 23,000
Summary of Liabilities
- Marked Applications:
- M: Net Liability = 23,000
- N: Net Liability = 26,000
- O: Net Liability = 14,000
- P: Net Liability = 7,000
- Unmarked Applications:
- M: Net Liability = 33,000
- N: Net Liability = 32,000
- O: Net Liability = 22,000
- P: Net Liability = 23,000
When firm applications are treated as marked applications, the total liability of each underwriter is calculated based on their underwriting ratio and their firm applications.
- Total Shares Issued: 100,000
- Underwriting Proportion:
- M: 30%
- N: 30%
- O: 20%
- P: 20%
- Firm Applications:
- M: 3,000 shares
- N: 2,000 shares
- O: 2,000 shares
- P: 3,000 shares
- Public Applications: 60,000 shares (Marked Applications)
- M: 10,000 shares
- N: 6,000 shares
- O: 8,000 shares
- P: 16,000 shares
Calculation of Total Liability:
- M: 30,000 (30% of 100,000) + 3,000 = 33,000
- N: 30,000 + 2,000 = 32,000
- O: 20,000 + 2,000 = 22,000
- P: 20,000 + 3,000 = 23,000
Net Liability Calculation:
- M: 33,000 - 10,000 = 23,000
- N: 32,000 - 6,000 = 26,000
- O: 22,000 - 8,000 = 14,000
- P: 23,000 - 16,000 = 7,000
Firm Underwriting as Unmarked Applications
When firm applications are treated as unmarked applications, the total liability is still based on the underwriting proportion, but the firm applications are not considered in the marked allocation.
Calculation of Total Liability:
- M: 30,000 + 3,000 = 33,000
- N: 30,000 + 2,000 = 32,000
- O: 20,000 + 2,000 = 22,000
- P: 20,000 + 3,000 = 23,000
Net Liability Calculation:
- M: 33,000 - 0 = 33,000
- N: 32,000 - 0 = 32,000
- O: 22,000 - 0 = 22,000
- P: 23,000 - 0 = 23,000
Summary of Liabilities
- Marked Applications:
- M: Net Liability = 23,000
- N: Net Liability = 26,000
- O: Net Liability = 14,000
- P: Net Liability = 7,000
- Unmarked Applications:
- M: Net Liability = 33,000
- N: Net Liability = 32,000
- O: Net Liability = 22,000
- P: Net Liability = 23,000
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ABC Co Ltd. issue 1,00,000 equity shares of 100 each MNO and P underwrites the entire issue in the proportion of 30%, 30%, 20% and 20% respectively. They also apply for firm share applications as follows. M-3,000 shares, N - 2,000 shares, O2,000 shares and P-3,000 shares. Asides the firm application, the public apply for 60,000 shares of which marked applications are as follows: M-10,000 shares, N-6,000 shares, 0-8,000 shares and P-16,000 shares.Calculate the net liability and total liability of each underwriter treating:i) Firm underwriting as marked applications.ii) Firm underwriting as unmarked applications.?
Question Description
ABC Co Ltd. issue 1,00,000 equity shares of 100 each MNO and P underwrites the entire issue in the proportion of 30%, 30%, 20% and 20% respectively. They also apply for firm share applications as follows. M-3,000 shares, N - 2,000 shares, O2,000 shares and P-3,000 shares. Asides the firm application, the public apply for 60,000 shares of which marked applications are as follows: M-10,000 shares, N-6,000 shares, 0-8,000 shares and P-16,000 shares.Calculate the net liability and total liability of each underwriter treating:i) Firm underwriting as marked applications.ii) Firm underwriting as unmarked applications.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about ABC Co Ltd. issue 1,00,000 equity shares of 100 each MNO and P underwrites the entire issue in the proportion of 30%, 30%, 20% and 20% respectively. They also apply for firm share applications as follows. M-3,000 shares, N - 2,000 shares, O2,000 shares and P-3,000 shares. Asides the firm application, the public apply for 60,000 shares of which marked applications are as follows: M-10,000 shares, N-6,000 shares, 0-8,000 shares and P-16,000 shares.Calculate the net liability and total liability of each underwriter treating:i) Firm underwriting as marked applications.ii) Firm underwriting as unmarked applications.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for ABC Co Ltd. issue 1,00,000 equity shares of 100 each MNO and P underwrites the entire issue in the proportion of 30%, 30%, 20% and 20% respectively. They also apply for firm share applications as follows. M-3,000 shares, N - 2,000 shares, O2,000 shares and P-3,000 shares. Asides the firm application, the public apply for 60,000 shares of which marked applications are as follows: M-10,000 shares, N-6,000 shares, 0-8,000 shares and P-16,000 shares.Calculate the net liability and total liability of each underwriter treating:i) Firm underwriting as marked applications.ii) Firm underwriting as unmarked applications.?.
ABC Co Ltd. issue 1,00,000 equity shares of 100 each MNO and P underwrites the entire issue in the proportion of 30%, 30%, 20% and 20% respectively. They also apply for firm share applications as follows. M-3,000 shares, N - 2,000 shares, O2,000 shares and P-3,000 shares. Asides the firm application, the public apply for 60,000 shares of which marked applications are as follows: M-10,000 shares, N-6,000 shares, 0-8,000 shares and P-16,000 shares.Calculate the net liability and total liability of each underwriter treating:i) Firm underwriting as marked applications.ii) Firm underwriting as unmarked applications.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about ABC Co Ltd. issue 1,00,000 equity shares of 100 each MNO and P underwrites the entire issue in the proportion of 30%, 30%, 20% and 20% respectively. They also apply for firm share applications as follows. M-3,000 shares, N - 2,000 shares, O2,000 shares and P-3,000 shares. Asides the firm application, the public apply for 60,000 shares of which marked applications are as follows: M-10,000 shares, N-6,000 shares, 0-8,000 shares and P-16,000 shares.Calculate the net liability and total liability of each underwriter treating:i) Firm underwriting as marked applications.ii) Firm underwriting as unmarked applications.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for ABC Co Ltd. issue 1,00,000 equity shares of 100 each MNO and P underwrites the entire issue in the proportion of 30%, 30%, 20% and 20% respectively. They also apply for firm share applications as follows. M-3,000 shares, N - 2,000 shares, O2,000 shares and P-3,000 shares. Asides the firm application, the public apply for 60,000 shares of which marked applications are as follows: M-10,000 shares, N-6,000 shares, 0-8,000 shares and P-16,000 shares.Calculate the net liability and total liability of each underwriter treating:i) Firm underwriting as marked applications.ii) Firm underwriting as unmarked applications.?.
Solutions for ABC Co Ltd. issue 1,00,000 equity shares of 100 each MNO and P underwrites the entire issue in the proportion of 30%, 30%, 20% and 20% respectively. They also apply for firm share applications as follows. M-3,000 shares, N - 2,000 shares, O2,000 shares and P-3,000 shares. Asides the firm application, the public apply for 60,000 shares of which marked applications are as follows: M-10,000 shares, N-6,000 shares, 0-8,000 shares and P-16,000 shares.Calculate the net liability and total liability of each underwriter treating:i) Firm underwriting as marked applications.ii) Firm underwriting as unmarked applications.? in English & in Hindi are available as part of our courses for UPSC.
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Here you can find the meaning of ABC Co Ltd. issue 1,00,000 equity shares of 100 each MNO and P underwrites the entire issue in the proportion of 30%, 30%, 20% and 20% respectively. They also apply for firm share applications as follows. M-3,000 shares, N - 2,000 shares, O2,000 shares and P-3,000 shares. Asides the firm application, the public apply for 60,000 shares of which marked applications are as follows: M-10,000 shares, N-6,000 shares, 0-8,000 shares and P-16,000 shares.Calculate the net liability and total liability of each underwriter treating:i) Firm underwriting as marked applications.ii) Firm underwriting as unmarked applications.? defined & explained in the simplest way possible. Besides giving the explanation of
ABC Co Ltd. issue 1,00,000 equity shares of 100 each MNO and P underwrites the entire issue in the proportion of 30%, 30%, 20% and 20% respectively. They also apply for firm share applications as follows. M-3,000 shares, N - 2,000 shares, O2,000 shares and P-3,000 shares. Asides the firm application, the public apply for 60,000 shares of which marked applications are as follows: M-10,000 shares, N-6,000 shares, 0-8,000 shares and P-16,000 shares.Calculate the net liability and total liability of each underwriter treating:i) Firm underwriting as marked applications.ii) Firm underwriting as unmarked applications.?, a detailed solution for ABC Co Ltd. issue 1,00,000 equity shares of 100 each MNO and P underwrites the entire issue in the proportion of 30%, 30%, 20% and 20% respectively. They also apply for firm share applications as follows. M-3,000 shares, N - 2,000 shares, O2,000 shares and P-3,000 shares. Asides the firm application, the public apply for 60,000 shares of which marked applications are as follows: M-10,000 shares, N-6,000 shares, 0-8,000 shares and P-16,000 shares.Calculate the net liability and total liability of each underwriter treating:i) Firm underwriting as marked applications.ii) Firm underwriting as unmarked applications.? has been provided alongside types of ABC Co Ltd. issue 1,00,000 equity shares of 100 each MNO and P underwrites the entire issue in the proportion of 30%, 30%, 20% and 20% respectively. They also apply for firm share applications as follows. M-3,000 shares, N - 2,000 shares, O2,000 shares and P-3,000 shares. Asides the firm application, the public apply for 60,000 shares of which marked applications are as follows: M-10,000 shares, N-6,000 shares, 0-8,000 shares and P-16,000 shares.Calculate the net liability and total liability of each underwriter treating:i) Firm underwriting as marked applications.ii) Firm underwriting as unmarked applications.? theory, EduRev gives you an
ample number of questions to practice ABC Co Ltd. issue 1,00,000 equity shares of 100 each MNO and P underwrites the entire issue in the proportion of 30%, 30%, 20% and 20% respectively. They also apply for firm share applications as follows. M-3,000 shares, N - 2,000 shares, O2,000 shares and P-3,000 shares. Asides the firm application, the public apply for 60,000 shares of which marked applications are as follows: M-10,000 shares, N-6,000 shares, 0-8,000 shares and P-16,000 shares.Calculate the net liability and total liability of each underwriter treating:i) Firm underwriting as marked applications.ii) Firm underwriting as unmarked applications.? tests, examples and also practice UPSC tests.
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