Phil and Terry Started a New Business Three Years Ago

question 30

Multiple Choice

Phil and Terry started a new business three years ago.Two years ago, they incorporated the business and issued themselves each 20,000 shares of stock.Last year, they took the company public in an IPO and issued an additional 100,000 shares of stock at that time.The offer price was $14 a share, the spread was 8 percent, and the lockup period was six months.The stock closed at $17 a share at the end of the first day of trading.During the first six months of trading, the stock had a price range of $13 to $23 per share.During the second six months of trading, the stock sold between $15 and $21 per share.Both Tracie and Amy purchased 100 shares at the offer price.Given this, which one of the following statements is correct? Ignore trading costs and taxes.

• A)Tracie could have earned a maximum profit of 100($23 - 17) on her investment.
• B)Phil could have sold 5,000 shares at $23 per share.
• C)The underwriters earned a spread per share equal to 8 percent of $17.
• D)The maximum price at which Terry could have sold his shares is $21.
• E)Amy paid 108 percent of $14 per share to purchase her 100 shares.

Understand the significance of formal authority and psychological centrality in nonprofit leadership.

Interpret the implications of the Sarbanes-Oxley Act and the recommendations of the Panel on the Nonprofit Sector on nonprofit practices.

Analyze governance structures, policy development, and effective board behaviors in nonprofit organizations.

Understand the factors contributing to increases in body fat with age.

---

Definitions:

Human Relations Skills

The ability to interact, communicate, and work well with individuals and groups, vital for personal and professional success in various settings.

Management Position

A role within an organization that involves directing and overseeing the work of employees and strategic planning.

Job Dissatisfaction

A negative feeling towards one's job, often due to issues such as work environment, compensation, or a mismatch between the job and personal expectations.

Life Satisfaction

The degree to which an individual feels content with their life's circumstances and achievements.