Calculating Costs of Issuing Stock Turbo Technology Corp

question 68

Multiple Choice

Calculating Costs of Issuing Stock Turbo Technology Corp.recently went public with an initial public offering of 3 million shares of stock.The underwriter used a firm commitment offering in which the net proceeds was $7.50 per share and the underwriter's spread was 9 percent of the gross proceeds.Turbo Technology also paid legal and other administrative costs of $200,000 for the IPO.Calculate the gross proceeds per share received by Turbo Technology from the sale of the 3 million shares of stock.

• A)$7.50
• B)$7.57
• C)$8.24
• D)$8.32

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Interest

Money paid at a particular rate for the use of borrowed funds or for delaying the repayment of a debt.

Ethnic Assimilation

The process by which individuals or groups of differing ethnic heritage are absorbed into the dominant culture of a society.

Praxis

The process by which a theory, lesson, or skill is enacted, embodied, or realized in the real world; often considered the practice or application of a learned skill.

European Nations

Countries located on the European continent, each with its own distinct culture, history, and government.