You Decide to Take Your Company Public by Offering a Total

question 129

Multiple Choice

You decide to take your company public by offering a total of 300,000 shares of common stock in an initial public offering (IPO) . You hire an underwriter who arranges a full commitment underwriting at a 7 % spread. As it turns out, the underwriters only sell 265,000 shares at $24 each. How much cash will you receive from your IPO?

• A) $5,914,800
• B) $6,360,000
• C) $6,696,000
• D) $7,200,000
• E) $7,704,000

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Definitions:

Performance Portion

The segment or part of an evaluation or assessment that measures the actual execution or demonstration of skills and knowledge.

Curfew

A regulation or order specifying a time by which individuals must remain indoors, typically enforced by authorities to maintain public order.

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The evenings of the weekdays, typically from Monday to Friday, considered as a timeframe for routine activities.

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Unspoken agreements or understandings that are not formally documented but are understood and expected by the parties involved.