An Investment Banker Agrees to Underwrite an Issue of 5

question 61

Multiple Choice

An investment banker agrees to underwrite an issue of 5 million shares of stock for NetChoice, Inc. on a best-efforts basis. The investment banker is able to sell 4.5 million shares for $31.00 per share and it charges NetChoice, Inc. $0.375 per share sold. If the investment bank sells 4.5 million shares for $29 per share, how much money does NetChoice, Inc. receive?

• A)$145,000,000.
• B)$130,500,000.
• C)$143,125,000.
• D)$128,812,500.
• E)$115,762,500.

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Definitions:

Telematics

Technology of sending, receiving, and storing information via telecommunication devices to control remote objects, commonly used for vehicle tracking, fleet management, and insurance.

Employee Privacy

The rights of employees to have personal information, activities, and communications kept confidential from unauthorized disclosure or monitoring within the workplace.

Monitor

To observe, keep track of, or check for a specific purpose, often for progress or compliance.

Technology

The application of scientific knowledge for practical purposes, especially in industry.