TriState Corp

question 72

Multiple Choice

TriState Corp. recently went public with an initial public offering in which they received a total of $50 million in new capital funding. The underwriter used a firm commitment offering in which the offer price was $30 and the underwriter's spread was $1.50. TriState also paid legal and other administrative costs of $950,000 for the IPO. What is the number of shares issued through this IPO?

• A) 1,698,333
• B) 1,787,720
• C) 1,754,386
• D) 1,666,667

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Definitions:

Marginal Cost

is the extra cost incurred by producing one more unit of a product or service.

Fixed Cost

Costs that do not change with the level of production or output, such as rent, salaries, and loan payments.

Variable Costs

Costs that change in proportion to the level of output or activity in a business.

Snow-clearing

The process of removing snow from surfaces like roads and walkways to ensure safe passage and transportation.