Mesmer Analytic, a Biotechnology Firm, Floated an Initial Public Offering

question 26

Multiple Choice

Mesmer Analytic, a biotechnology firm, floated an initial public offering of 2,000,000 shares at a price of $5.00 per share.The firm's owner/managers held 60 percent of the company's $1.00 par value authorized and issued stock following the public offering.One month after the IPO, the firm's board of directors declared a one-time dividend of $0.50 per share payable to all stockholders, meaning that the owner/managers would receive an immediate dividend, in part out of the pockets of the new public stockholders.What was the book value per share of the firm before and after the special dividend was paid?

• A)$2.60; $2.10
• B)$2.60; $2.60
• C)$2.60; $2.30
• D)$1.60; $1.10
• E)$1.60; $1.00

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Definitions:

Patriarchal Tradition

A social system in which men hold primary power and predominate in roles of political leadership, moral authority, and property control.

Gender-neutral

Language, policies, or practices that avoid discrimination by not distinguishing roles according to people's sex or gender identity.

Violence Against Women

Acts of violence that are primarily or exclusively committed against women, often stemming from or reinforcing gender inequality.

Semiofficial Terrorism

Acts of terror or intimidation that are indirectly authorized or tolerated by states, but not openly acknowledged as state policy.