Calculating Costs of Issuing Stock TV Technology Corp

question 49

Multiple Choice

Calculating Costs of Issuing Stock TV Technology Corp.recently went public with an initial public offering of 1.5 million shares of stock.The underwriter used a firm commitment offering in which the net proceeds was $24.50 per share and the underwriter's spread was 5 percent of the gross proceeds.TV Technology also paid legal and other administrative costs of $300,000 for the IPO.Calculate the gross proceeds per share received by TV Technology from the sale of the 1.5 million shares of stock.

• A)$24.50
• B)$24.70
• C)$25.79
• D)$26.00

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Definitions:

Lock And Key Model

A model for enzyme-substrate interaction suggesting that the enzyme and the substrate possess specific complementary geometric shapes that fit exactly into one another.

Molecular Structure

The three-dimensional arrangement of atoms within a molecule, determining its chemical properties and behavior.

Antibody

A protein produced by the body's immune system that recognizes and binds to foreign substances such as bacteria and viruses, neutralizing them.

Antibody

A protein produced by the immune system that recognizes and binds to specific foreign substances (antigens) to help fight off infections.