Stanley's Flags Wants to Raise $5 Million to Open a New

question 229

Multiple Choice

Stanley's Flags wants to raise $5 million to open a new distribution center. The company estimates the issue costs including the legal and accounting fees will be $210,000. The underwriters have set
The stock price at $18 a share and the underwriting spread at 7.5 percent. How many shares of
Stock does Stanley's have to sell to meet its cash need?

• A) 269,251 shares
• B) 300,300 shares
• C) 310,872 shares
• D) 311,153 shares
• E) 312,913 shares

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Definitions:

Systematic Desensitization

A behavioral therapy technique used to reduce phobias and anxiety through gradual exposure to the feared object or situation while practicing relaxation techniques.

Relaxation Training

Techniques designed to reduce stress and anxiety, promoting physical and mental calm.

Fear Hierarchy

A ranked list of fears from least to most intense, used in therapy to gradually expose individuals to their phobias or fears.

Desensitization Training

A behavioral therapy technique used to reduce fear or anxiety responses by gradually exposing the patient to the feared object or context without any danger.