The Titanic Company Has Just Gone Public

question 86

Multiple Choice

The Titanic Company has just gone public. Under a firm commitment agreement, Titanic received$14 for each of the 2 million shares sold. The initial offering price was $15 per share, and the stockrose to $16.40 per share in the first few minutes of trading. Titanic paid $500,000 in administrative costs. The total floatation costs for the new issue are

• A) $2,000,000.
• B) $4,800,000.
• C) $2,800,000.
• D) $5,300,000.

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Definitions:

Series RC

A circuit configuration that features a resistor (R) and a capacitor (C) connected in sequence along a single loop, affecting the circuit's overall impedance.

Power Factor

The ratio of real power flowing to the load to the apparent power in the circuit in electrical engineering, measuring the efficiency with which the current is converted into useful work.

Phase Angle

The angle or phase difference between two waveforms or signals, often measured in degrees.

Circuit Current

The flow of electric charge in a complete or partial electrical circuit.