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Exam Code: 350-401
Exam Name: Implementing Cisco Enterprise Network Core Technologies (350-401 ENCOR)
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NEW QUESTION: 1
Bubba Corporation has a registered public offering of 750,000 shares at $40. An underwriter of 30,000 shares is advised by the manager that its retention will be 70%.
How many shares may the underwriter sell to its own customers?
D. as many as it can up to a maximum of 51,000
Explanation: 21,000. The underwriter is permitted to retain 70% of the 30,000 shares. The remaining 9,000 shares are kept in the pot by the manager.
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