Consider the Following Information About an IPO Underwriting Transaction

question 10

Multiple Choice

Consider the following information about an IPO underwriting transaction.The net proceeds to the issuing firm are $141.75 million.The public offering price is $50 per share.The spread is $2.75 per share.Two million shares are sold.How many shares are issued in this IPO?

• A)3,500,000
• B)3,000,000
• C)2,500,000
• D)2,000,000

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Definitions:

Adolescence

A developmental stage between childhood and adulthood characterized by significant physical, psychological, and social changes.

Childhood

The period in human development that extends from birth until adolescence.

Adulthood

The period in an individual's life after they have passed through childhood and adolescence, typically marked by full physical development and legal responsibilities.

Permissive Parenting Style

A child-rearing approach characterized by high levels of warmth and low levels of control or discipline.