Webster Electrics Is Offering 1,500 Shares of Stock in a Dutch

question 75

Multiple Choice

Webster Electrics is offering 1,500 shares of stock in a Dutch auction.The bids include: How much cash will Webster Electrics receive from selling these shares? Ignore all transaction and flotation costs.

• A)$28,500
• B)$30,000
• C)$31,500
• D)$33,000
• E)$34,500

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Definitions:

Dividend

A distribution of profits by a corporation to its shareholders, usually in the form of cash or additional shares.

Indirect NCI

Non-controlling interest (NCI) that is not directly held but is influenced through another subsidiary, affecting the parent company's consolidation process and equity valuation.

Direct NCI

Direct Non-Controlling Interest refers to the percentage of equity in a subsidiary not held by the parent company, directly showcasing the minority shareholders' stake in the profits and losses.

Economic Entity

A unit such as a company or organization that performs economic activities and is capable of possessing assets, incurring liabilities, and conducting business transactions.