Glasses, Etc

question 87

Multiple Choice

Glasses, Etc. is offering 100,000 shares of common stock to the public in an initial public offering (IPO) . The underwriters agree to pay $18 a share and to provide their services in a best efforts underwriting. The offer price is set at $19.50. The underwriters sell a total of 91,700 shares to the general public. How much cash did Glasses, Etc. receive from its IPO?

• A) $1,650,600
• B) $1,720,500
• C) $1,788,150
• D) $1,800,000
• E) $1,950,000

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Definitions:

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how well a company uses investments to generate earnings growth.

Ratio Analysis

A quantitative analysis method used to evaluate a company's financial health by calculating ratios from financial statements.

Operating Activities

Transactions and other events that affect the net income of a business, relating to its principal revenue-producing operations.

Statement of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company.