1. A stock dealer has a bid of $17.00 and an ask of $17.25. An investor buys and then sells the stock at these quotes. What is investor’s transaction cost per dollar invested?
2. In a fully underwritten offering a firm sells 1 million shares of stock through a full underwritten offering. Their banker charged a $2.45 spread and sold the stock to the public at a price of $35 per share. The issuing firm also pays $250,000 in other direct costs to complete the sale. What is the firm’s net proceeds per share from the sale?