When Issuing New Stock, a Firm Received $50 Million While

question 77

Multiple Choice

When issuing new stock, a firm received $50 million while the underwriting spread was $4 million and total direct expenses were $6 million.The %age of the proceeds absorbed by direct expenses was:

• A)7.14%.
• B)8.00%.
• C)10.71%.
• D)12.00%.

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Definitions:

Passing

The ability of an individual to be regarded as a member of an identity group or category different from their own, which can include racial identity, gender, or social class.

Jewish Man

An individual who identifies with or is part of the Jewish faith, culture, or ethnic group.

Arab Identity

The sense of self and communal belonging that defines the people of Arab countries, encompassing language, culture, and history.

Stigmatized

Describing individuals or groups that are unfairly discredited or devalued by society, based on characteristics that distinguish them from societal norms.