Calculating Costs of Issuing Stock Video Games, Inc

question 81

Multiple Choice

Calculating Costs of Issuing Stock Video Games, Inc., with the help of its investment bank recently issued 10 million shares of new stock. The offer price on the stock was $47.50 per share and Video's received a total of $446,500,000 through this stock offering. Calculate the net proceeds and the underwriter's spread on the stock offering. What percentage of the gross price is the investment bank charging Video's for underwriting the stock issue?

• A) 3%
• B) 30%
• C) 6%
• D) 9%

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Definitions:

Managerial Competence

The combination of skills, knowledge, and ability that enables a manager to effectively perform their duties and lead their team or organization.

Social Standing

The perceived rank or status of an individual or group within a social hierarchy.

Max Weber

A German sociologist, philosopher, and political economist, known for his theory on the structuring of society and for his ideas on bureaucracy.

Henri Fayol

A French engineer and management theorist renowned for developing a general theory of business administration and identifying the five primary functions of management.