Braynerd Chemicals Sells 40 Million Shares of Stock in an SEO-25

question 10

Multiple Choice

Braynerd Chemicals sells 40 million shares of stock in an SEO-25 million being primary shares issued by the company and 15 million being secondary shares sold by investors in the company. At the time of the sale, Braynerd's stock was selling at $21.00 per share. If the underwriter charges 5% of the gross proceeds as a fee, how much money was raised in the sale?

• A) $374.06 million
• B) $423.94 million
• C) $498.75 million
• D) $573.56 million

Analyze the impact of changes in cost structures on profitability.

Understand the processes for adjusting sales prices, cost of goods sold, and operating costs to meet business objectives.

Understand the key factors influencing inflation and unemployment rates.

Identify and describe phases of the business cycle (expansion, peak, recession, trough).

---

Definitions:

Trust Receipt

A notice provided by the bank to a buyer who has taken out a short-term loan to purchase goods, with the bank holding the title to those goods until the loan is repaid.