Hughes Technology Corp

question 47

Multiple Choice

Hughes Technology Corp. recently went public with an initial public offering in which they received a total of $9 million in new capital funding. The underwriter used a firm commitment offering in which the offer price was $102 and the underwriter's spread was $1.35. Hughes Technology also paid legal and other administrative costs of $400,000 for the IPO. Calculate the number of shares issued through this IPO.

• A) 93,393
• B) 92,157
• C) 89,419
• D) 88,235

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, representing how much of an asset's value has been used up over a period.

Depreciation Rate

The percentage rate at which an asset is depreciated across its useful life, impacting how much of its cost is allocated as an expense each year.

Accelerated Depreciation

A method of depreciation in which an asset loses book value at a faster rate than the traditional straight-line method.

Depreciation Expense

The portion of the cost of a tangible fixed asset allocated as an expense to a period, reflecting the usage and wear and tear of the asset.