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

question 57

Multiple Choice

Assume an 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.In percentage terms,how much of the day's closing market value was absorbed by the total costs associated with the issue?

• A) 13.33%
• B) 23.33%
• C) 33.33%
• D) 43.33%

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Definitions:

LMX Theory

Stands for Leader-Member Exchange Theory, highlighting the importance of the relationship between leaders and their followers in influencing organizational outcomes.

Special Assignments

Unique tasks or projects given to employees outside of their regular duties, often to address specific issues or opportunities.

Supportive Leadership

A leadership style that focuses on building trust, encouragement, and empathy towards members to boost morale and job satisfaction.

House's Path-Goal

A leadership theory that suggests leaders can increase subordinate satisfaction and performance by clarifying and clearing the paths to their goals, taking into account the work environment and the characteristics of the employees.