Plains Corp

question 114

Multiple Choice

Plains Corp. recently went public with an initial public offering in which they received a total of $25 million in new capital funding. The underwriter used a firm commitment offering in which the offer price was $25 and the underwriter's spread was $1.00. Plains also paid legal and other administrative costs of $800,000 for the IPO. What is the number of shares issued through this IPO?

• A) 1,075,000
• B) 1,041,667
• C) 1,032,000
• D) 1,008,334

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Definitions:

Standard Deviation

The positive square root of the variance.

Advertising

The action of calling public attention to products, services, needs, etc., especially by paid announcements in print, broadcast, or electronic media.

Sales

The activity or business of selling products or services.

Equation

A mathematical statement that asserts the equality of two expressions, typically involving variables and constants.