AbacusCom Has Just Made an Initial Public Offering of Stock

question 36

Multiple Choice

Abacus.com has just made an initial public offering of stock with the help of an investment bank.It sold 5 million shares at a price of $84 each.How much money did the corporation raise through this stock offering?

• A)$420 million
• B)zero,because a firm only acquires funds on the secondary market
• C)$336 million
• D)$420 million minus fees paid to the investment bank
• E)It depends on the interest rate

Understand the debate on the nature of intelligence tests and their biases.

Comprehend the significance of fluid and crystallized intelligence in cognitive assessment.

Understand the concept and importance of maintaining an appropriate level of current assets in relation to sales through different financial policies.

Recognize the impact of flexible and restrictive short-term financial policies on a firm's financial health and its ability to meet short-term obligations.

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Definitions:

Inclusive Fitness

A concept in evolutionary biology that considers an individual's success in passing genes to the next generation, including through relatives.

Reproductive Success

The success an organism achieves in passing its genes to the next generation, often measured by the number of offspring an organism produces that survive to reproduce.

Kin Selection

Indirect selection; adaptation to the environment due to the reproductive success of an individual’s relatives.

Altruism

The behavior of an individual that benefits another at its own expense, observed in various species as a part of social interaction.