Time

Task
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q

Task Name
Evaluate the prestige of each potential underwriter
Select a syndicate of underwriters
Negotiate the commitment of each member of the syndicate
Negotiate the spread for each member of the syndicate
Prepare the registration statement
Submit the registration statement to SEC
Make the presentation to institutional investors
Distribute the preliminary prospectus
Calculate the issue price
Receive deficiency memorandum from the SEC
Amend the registration statement and resubmit it to SEC
Receive registration confirmation from the SEC
Confirm that the new issue complies with the 'blue sky' laws
Appoint a registrar
Appoint a transfer agent
Issue final prospectus that includes the final offer price
Phone interested buyers

Normal New
3
1.5
2
3
5
1
6
3
5
3
1
2
1
3
3.5
4.5
4

1.5
0.5

4
4
2
3.5
0.5
0.5
1.5
1.5
2
1.5

Cost
Normal
$
$
$
$
$
$
$
$
$

8,000.00
4,500.00
9,000.00
12,000.00
50,000.00
1,000.00
25,000.00
15,000.00
12,000.00
$
$
6,000.00
$
$
5,000.00
$ 12,000.00
$ 13,000.00
$ 40,000.00
$
9,000.00
$ 221,500.00

New
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

14,000.00
8,000.00
95,000.00
60,000.00
22,000.00
31,000.00
9,000.00
8,300.00
19,000.00
21,000.00
99,000.00
20,000.00

Max
Reduction
1.5
1
0
0
1
0
2
1
1.5
0
0.5
0
0.5
1.5
2
2.5
2.5

Cost per week

reduction
$
4,000.00
$
3,500.00
$
$
$ 45,000.00
$
$ 17,500.00
$
7,000.00
$ 12,666.67
$
$
6,000.00
$
$
6,600.00
$
4,666.67
$
4,000.00
$ 23,600.00
$
4,400.00

Start
0
3
5
4
7
12
13
18.5
16.5
13
16
17
21.5
19
19
22.5
22.5
Required
Finish
Total Cost

Reduction
0
0.5
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
27
27
$ 223,250.00

Finish
3
4
7
7
12
13
19
21.5
21.5
16
17
19
22.5
22
22.5
27
26.5