Plains Corp

question 114

Multiple Choice

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. Plains 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