In Its IPO,Jillian's Imprints,a Small Publishing House,offered Stock at a Price

question 35

Multiple Choice

In its IPO,Jillian's Imprints,a small publishing house,offered stock at a price of $8.00 per share.The underwriters of this IPO had a spread of 6.5% per share.If 2 million shares were sold,what funds did Jillian's receive from the IPO?

• A)$5.21 million
• B)$14.96 million
• C)$16.00 million
• D)$17.04 million

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Definitions:

Time

The ongoing sequence of events and the resource that can be managed, spent, saved, or wasted in activities or processes.

Extended Credit

A financial arrangement that allows a customer to purchase goods or services on account, paying for them at a later date.

Collection System

A process or network designed for gathering and transporting something, often used in the context of waste collection or receivables in finance.

Breakeven Point

The moment when a business's revenues equal its costs, meaning the business is neither making a profit nor a loss.