Computer Technology Corp

question 115

Multiple Choice

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 Technology also paid legal and other administrative costs of $300,000 for the IPO. Calculate the gross proceeds per share received by Computer Technology 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:

Valence Electrons

The electrons in the outer electron shell, known as the valence shell, of an atom; in the formation of a chemical bond, an atom can accept electrons into its valence shell or donate or share valence electrons.

Isotopes

Variants of a particular chemical element that differ in neutron number, and consequently in mass, but not in chemical properties.

Radioisotope

A radioactive isotope of an element, used in various scientific applications including medicine and radiometric dating.

Stable Isotope

A non-radioactive form of an element’s isotope, which does not change or decay over time.