Calculating Costs of Issuing Stock Plains Corp

question 62

Multiple Choice

Calculating Costs of Issuing Stock Plains Corp. recently went public with an initial public offering in which they received a total of $25 million in new capital funding. The underwriter used a firm commitment offering in which the offer price was $25 and the underwriter's spread was $1.00. TriState also paid legal and other administrative costs of $800,000 for the IPO. What is the number of shares issued through this IPO?

• A) 1,075,000
• B) 1,041,667
• C) 1,032,000
• D) 1,008,334

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Definitions:

Monarchies

A form of government with a monarch at the head, where the position is usually inherited and held for life, ranging from absolute monarchies, where the monarch has wide powers, to constitutional monarchies, where their role is ceremonial.

Ralph Waldo Emerson

A 19th-century American essayist, lecturer, philosopher, and poet who led the transcendentalist movement of the mid-19th century.

Fugitive Slave Act

Part of the Compromise of 1850, this law required that escaped slaves, upon capture, be returned to their masters and that officials and citizens of free states had to cooperate.

Kansas-Nebraska Act

A 1854 law that created the territories of Kansas and Nebraska, leaving the decision of slavery up to the popular sovereignty of those territories, effectively repealing the Missouri Compromise.