An Investment Banker Agrees to Underwrite an Issue of 5

question 86

Multiple Choice

An investment banker agrees to underwrite an issue of 5 million shares of stock for NetChoice, Inc. on a firm commitment basis. The investment banker pays $31.50 per share to NetChoice, Inc. for the 5 million shares of stock. It then sells those shares to the public for $30.00 per share. If the investment bank can sell the shares for $34 per share, how much money does NetChoice, Inc. receive?

• A)$150,000,000.
• B)$157,500,000.
• C)$112,000,000.
• D)$125,000,000.
• E)$105,000,000.

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Definitions:

Persistence

The continued effort toward a goal despite obstacles or challenges.

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The process of acquiring new understanding, knowledge, behaviors, skills, values, attitudes, and preferences.

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The cognitive function that allows us to encode, store, retain, and subsequently recall information and past experiences.

Storage

The retention of encoded information over time.