Highlander Homes Stock Trades at $32 Per Share and There

question 104

Multiple Choice

Highlander Homes stock trades at $32 per share and there are 50 million shares outstanding.The management would like to raise $200 million in an SEO,and current investors would like to sell $50 million of their own stock.If the underwriter charges 5% of gross proceeds,how many shares must it sell in the total (primary and secondary) offering?

• A)7.81 million
• B)6.05 million
• C)8.22 million
• D)6.58 million

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Definitions:

Non-Profit Organizations

Entities that operate for the welfare of the public or a specific group of people, reinvesting all profits into their mission rather than distributing them to owners or shareholders.

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Authorized absences from work, typically for academic or research pursuits, granted to employees as a benefit or reward.

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The act of a corporation donating some of its profits or resources to charitable causes.

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A powerful tropical storm characterized by a low-pressure center, strong winds, and a spiral arrangement of thunderstorms that produce heavy rain.