The Huff Co

question 84

Multiple Choice

The Huff Co.has just gone public.Under a firm commitment agreement,Huff received $21.50 for each of the 6 million shares sold.The initial offering price was $23.65 per share,and the stock rose to $31.42 per share in the first few minutes of trading.Huff paid $1,260,000 in direct legal and other costs,and $390,000 in indirect costs.The flotation costs were what percentage of the funds raised?

• A)38.56 percent
• B)40.32 percent
• C)41.68 percent
• D)48.03 percent
• E)49.09 percent

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Definitions:

Richest 10%

The segment of a population that holds the highest ten percent of wealth or income within a specified region or country.

Human Development Report

An annual report issued by the United Nations Development Programme, evaluating countries on human development metrics such as education, life expectancy, and income.

Most Likely

Describes an outcome that has the highest probability of occurring among all possible outcomes.