Calculating Costs of Issuing Stock Mick E Inc

question 108

Multiple Choice

Calculating Costs of Issuing Stock Mick E Inc.plans to issue 25 million new shares of its stock.In discussions with its investment bank,Mick E learns that the bankers recommend a net proceed of $29.80 per share and they will charge an underwriter's spread of 8.5 percent of the gross proceeds.In addition,Mick E must pay $3 million in legal and other administrative expenses for the seasoned stock offering.Calculate the gross proceeds per share received by Mick E from the sale of the 25 million shares of stock.

• A)$29.80
• B)$32.45
• C)$32.57
• D)$32.70

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Definitions:

Behaviourally Anchored Rating Scale

A performance appraisal method that uses specific examples of behavior to evaluate employees' performance rather than subjective judgments.

Morning Bias

Morning Bias refers to the potential for decision-making or judgment to be influenced by the time of day, especially a tendency to have different cognitive processing in the morning.

Subjective Performance Measures

Evaluation metrics based on personal judgments or opinions rather than quantifiable data, often used in performance reviews.

Frame-of-Reference Training

Training designed to standardize the evaluation criteria and rating scales used by evaluators, typically in the context of performance appraisal.