Criswell Mining Stock Trades at $18 Per Share and There

question 60

Multiple Choice

Criswell Mining stock trades at $18 per share and there are 200 million shares outstanding.The management would like to raise $100 million in an SEO.If the underwriter charges 5% of gross proceeds,how many shares must it sell?

• A)5.56 million
• B)5.85 million
• C)8.93 million
• D)11.11 million

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Definitions:

Dishonored

refers to a financial instrument, such as a check or bill of exchange, that has been refused acceptance or payment.

Overdue

Overdue refers to a situation where a payment or obligation has not been met by its specified due date.

Cashier's Check

A check issued by a bank, drawn from the bank’s own funds and signed by a cashier or teller, guaranteed by the bank.

Payable

The amounts of money that a company owes to vendors or creditors for goods or services received that have not yet been paid.