The Huff Co

question 46

Multiple Choice

The Huff Co. has just gone public. Under a firm commitment agreement, Huff received $21.50 for each of the 6 million shares sold. The initial offering price was $23.65 per share, and the stock rose to $30.51 per share in the first few minutes of trading. Huff paid $1,260,000 in direct legal and other costs, and $390,000 in indirect costs. The flotation costs were what percentage of the funds raised?

• A)38.56 percent
• B)40.32 percent
• C)41.68 percent
• D)43.75 percent
• E)44.09 percent

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Definitions:

Basic Trust

A fundamental sense of confidence in the reliability of the world and others, considered as a cornerstone of psychological development by Erik Erikson.

Secure Attachment

A form of attachment where individuals feel confident and trust in the availability and responsiveness of their caregivers.

Erik Erikson

A psychoanalyst and developmental psychologist recognized for his contributions to the theory of human beings' psychosocial evolution.

Stranger Anxiety

A form of distress that young children experience when exposed to unfamiliar people, typically observed between 6 to 12 months of age.