Turbo Technology Corp

question 110

Multiple Choice

Turbo Technology Corp. recently went public with an initial public offering of 3 million shares of stock. The underwriter used a firm commitment offering in which the net proceeds was $7.50 per share and the underwriter's spread was 9 percent of the gross proceeds. Turbo Technology also paid legal and other administrative costs of $200,000 for the IPO. Calculate the gross proceeds per share received by Turbo Technology from the sale of the 3 million shares of stock.

• A) $7.50
• B) $7.57
• C) $8.24
• D) $8.32

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Definitions:

NextInt

A method often found in Java's Scanner class used to read the next integer value from the input source.

NextDouble

A method in Java's Scanner class that scans the next token of the input as a double.

Identifier

A name given to elements in a program, such as variables, methods, classes, and so on, for identification purposes.

Precedence

Refers to the rules that determine the order in which operators are evaluated in expressions, guiding the execution flow in programming.