Denver Mines Is Offering 50,000 Shares of Stock to the Public

question 3

Multiple Choice

Denver Mines is offering 50,000 shares of stock to the public in a best efforts cash offer.The offer price is $48 a share and the underwriter's spread is 9.3 percent.The administrative costs are estimated at $320,000.How much will Denver Mines net from this stock offering assuming 95 percent of the issue is sold?

• A)$1,629,000
• B)$1,646,000
• C)$1,747,960
• D)$1,705,450
• E)$1,988,950

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Definitions:

Radical Expression

An expression involving roots, such as square roots or cube roots, of numbers.

Calculator

A calculator is an electronic or mechanical device used to perform arithmetic calculations ranging from basic operations like addition and subtraction to complex functions and equations.

Evaluate

To compute the value of a particular expression.

Irrational

A type of number that cannot be expressed as a simple fraction, including numbers like \(\pi\) and \(\sqrt{2}\).