Use the Following Information to Answer the Question(s)below

question 14

Multiple Choice

Use the following information to answer the question(s) below.
Wyatt Oil has 8 million shares outstanding and is about to issue 10 million new shares in an IPO.The IPO price has been set at $15 per share,and the underwriting spread is 6%.The IPO is a big success with investors,and the share price rises to $35 on the first day of trading.
-The amount that Wyatt Oil pays as an underwriting spread is closest to:

• A)$6 million.
• B)$7 million.
• C)$9 million.
• D)$17 million.
• E)$21 million.

---

Definitions:

Necessary Reagents

Specific chemicals required to carry out a particular chemical reaction.

Acid-Catalyzed Halogenation

A chemical reaction where a halogen is introduced into an organic molecule with the aid of an acid catalyst.

Major Organic Product

The main product formed in greater abundance during an organic reaction, compared to other possible products.

HIV-1

The most prevalent and pathogenic type of the human immunodeficiency viruses that causes acquired immune deficiency syndrome (AIDS).