An Investment Banker Agrees to Underwrite an Issue of 5

question 55

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 were able to sell all 5 million shares for $35, how much money would NetChoice, Inc. receive?

• A)$195,675,000.
• B)$187,500,000.
• C)$130,250,000.
• D)$175,000,000.
• E)$173,125,000.

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Definitions:

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Legal, social, or ethical principles of freedom or entitlement; the fundamental norms about what is allowed or owed to people.

Privacy Term

A concept or condition related to the protection of personal information from unauthorized access or disclosure.

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A word or phrase that is commonly used in the context of governmental, political, or public affairs.

Informed Consent

The process by which a fully informed individual voluntarily agrees to participate in a particular course of action, after understanding the potential risks, benefits, and alternatives.