Bejeweled,a Chain of Crafting Shops,is Selling 500,000 Shares of Stock

question 59

Multiple Choice

Bejeweled,a chain of crafting shops,is selling 500,000 shares of stock in an auction IPO.At the end of the bidding period they have received the bids shown above.Which of the following is closest to the price at which the shares will be offered?

• A)$3.50
• B)$3.75
• C)$4.25
• D)$4.75

---

Definitions:

Principal and Interest

The original amount of a loan (principal) combined with the cost of borrowing that money (interest).

Financial Covenants

Agreements between a borrower and lender setting specific financial ratios or milestones the borrower must maintain.

Minimum Financial Tests

Financial benchmarks or ratios a company must achieve or maintain to comply with certain agreements, often related to debt covenants.

Borrower Must

Obligations or conditions a borrower needs to fulfill as per the terms of the loan agreement.