TriState Corp

question 72

Multiple Choice

TriState Corp. recently went public with an initial public offering in which they received a total of $50 million in new capital funding. The underwriter used a firm commitment offering in which the offer price was $30 and the underwriter's spread was $1.50. TriState also paid legal and other administrative costs of $950,000 for the IPO. What is the number of shares issued through this IPO?

• A) 1,698,333
• B) 1,787,720
• C) 1,754,386
• D) 1,666,667

Understand the relationship between risk and return in portfolio management.

Analyze how altering the proportions of assets within a portfolio impacts the expected rate of return and standard deviation.

Interpret and calculate the slope of a budget line in the context of portfolio combinations on a risk-return graph.

Apply the concept of risk-return trade-off to portfolio selection.

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Definitions:

Retention Ratio

The proportion of net income that is retained by a company, rather than distributed to shareholders as dividends.

Receivables Balance

The total amount of money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Average Collection Period (ACP)

Measures the average number of days it takes for a company to collect payments from its customers.

Financial Planning

The process of creating strategies for managing financial resources to meet life goals.