Assume the Issuer Incurs $1 Million in Other Expenses to Sell

question 12

Multiple Choice

Assume the issuer incurs $1 million in other expenses to sell 3 million shares at $40 each to an underwriter and the underwriter sells the shares at $43 each.By the end of the first day's trading,the issuing company's stock price had risen to $70.What is the total cost of issuing the securities?

• A) $81 million
• B) $91 million
• C) $101 million
• D) $111 million

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Definitions:

Good Moods

Emotional states characterized by feelings of happiness, satisfaction, or optimism.

Positive Mood

A state of feeling wherein individuals experience joy, satisfaction, and well-being.

Mortality Salience

The state of being reminded of one’s mortality.

Mortality Salience

An awareness of death's inevitability, leading individuals to confront their own mortality and potentially alter their behaviors or beliefs.