Calculating Costs of Issuing Stock Computer Technology Corp

question 20

Multiple Choice

Calculating Costs of Issuing Stock Computer Technology Corp. recently went public with an initial public offering of 7 million shares of stock. The underwriter used a firm commitment offering in which the net proceeds was $8.35 per share and the underwriter's spread was 7 percent of the gross proceeds. Computer also paid legal and other administrative costs of $300,000 for the IPO. Calculate the gross proceeds per share received by Computer from the sale of the 7 million shares of stock.

• A) $8.35
• B) $8.39
• C) $8.98
• D) $9.02

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Definitions:

Temporarily Erases

Refers to the process of removing data or content for a short period, implying that it can be restored or is not permanently deleted.

Memory

The component of a computer that stores data and program instructions for temporary or permanent access.

Computer Infected

A state where a computer system has been compromised by malicious software like viruses, trojans, or spyware.

Malicious Background

A term indicating background operations on a computer or network that are intended to be harmful or unauthorized.