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

question 50

Multiple Choice

Mesmer Analytic, a biotechnology firm, floated an initial public offering of 2,000,000 shares at a price of R5.00 per share.The firm's owner/managers held 60 percent of the company's R1.00 par value authorized and issued shares following the public offering.One month after the IPO, the firm's board of directors declared a one-time dividend of R0.50 per share payable to all shareholders, meaning that the owner/managers would receive an immediate dividend, in part out of the pockets of the new public shareholders.What was the book value per share of the firm before and after the special dividend was paid?

• A) R2.60; R2.10
• B) R2.60; R2.60
• C) R2.60; R2.30
• D) R1.60; R1.10
• E) R1.60; R1.00

---

Definitions:

The Social Sciences

Academic disciplines that study human society and social relationships through various methods of empirical investigation and critical analysis.

Informed Consent

A process by which a person voluntarily confirms their willingness to participate in a particular activity, after having been informed of all the risks, benefits, and alternatives involved.

Covert Research

Research conducted without the knowledge or consent of those being observed or studied, often raising ethical concerns.

Risks And Benefits

The potential negative and positive outcomes or consequences associated with a specific action or decision.