Highlander Homes Stock Trades at $32 Per Share and There

question 31

Multiple Choice

Highlander Homes stock trades at $32 per share and there are 50 million shares outstanding.The management would like to issue a total of 8 million (primary and secondary) shares in an SEO.If the underwriter charges 5% of gross proceeds,75% of the shares are primary shares sold to new investors,and 25% of the shares are secondary shares sold to new investors,what percentage of the company will be owned by the new investors?

• A)10.34%
• B)13.79%
• C)10.71%
• D)14.29%

Knowledge of dividend policies and their effect on preference and ordinary shares.

Understanding financial mechanisms corporations use to manage shares and shareholder equity.

Ability to calculate dividends and understand the impact on shareholders.

Knowing different types of preference shares and their specific attributes.

---

Definitions:

Income Inequality

The uneven distribution of income within a population, leading to a gap between the wealthiest and the poorest individuals or households.

Obesity Rates

The percentage or proportion of a population that is deemed obese, typically measured by the Body Mass Index (BMI) criteria.

Anxiety Rates

The prevalence or incidence of anxiety disorders in a specific population over a given period of time.

Communities

Groups of people living in the same place or having a particular characteristic in common, often sharing a sense of identity and belonging.