Plasti-Tech Inc

question 97

Multiple Choice

Plasti-tech Inc. has decided to go public and has sold 2 million of its shares to its underwriter for $20 per share. The underwriter then sold them to the public for $22 each. Plasti-tech also encountered $0.5 million in administrative fees. Soon after the issue, the stock price rose to $25. Find Plasti-tech Inc.'s total cost of this issue.

• A) $4.5 million
• B) $9.5 million
• C) $10.5 million
• D)$14.5 million

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Definitions:

Market Basket

A selected set of goods and services used to track the price level or inflation in an economy.

Production Sector

An economic segment focused on the production of goods and services, including manufacturing and construction.

Consumption Sector

The part of an economy that represents the total spending of consumers on goods and services for personal use.

Labor Services

The work performed by individuals for which they are compensated.