An Underwriter Issues a Firm Commitment to Sell 1 Million

question 92

Multiple Choice

An underwriter issues a firm commitment to sell 1 million shares at $20 each, including a $2 spread. How much does the issuing firm receive if only 500,000 shares are sold?

• A) $9 million
• B) $10 million
• C) $18 million
• D)$20 million

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Definitions:

Pressure-Flaking

A technique used in stone tool making where materials are shaped by the application of pressure to flake off small pieces.

Multiregional Hypothesis

The hypothesis that modern humans originated through a process of simultaneous local transition from Homo erectus to Homo sapiens throughout the inhabited world.

Recent African Origins Hypothesis

The hypothesis that modern humans are all derived from one single population of archaic Homo sapiens who migrated out of Africa after 100,000 years ago, replacing all other archaic forms due to their superior cultural capabilities; also known as the Eve hypothesis or the out of Africa hypothesis.

Homo Sapiens Idaltu

An extinct subspecies of Homo sapiens that lived approximately 160,000 years ago, discovered in Ethiopia.