Calculating Costs of Issuing Stock Wildcat,Inc

question 65

Multiple Choice

Calculating Costs of Issuing Stock Wildcat,Inc.,needs to raise $750 million to finance its plan for nationwide expansion.In discussions with its investment bank,Wildcat learns that the bankers recommend an offer price (or gross price) of $25 per share and they will charge an underwriter's spread of $1.50 per share.Calculate the net proceeds to Wildcat from the sale of stock.How many shares of stock will Wildcat need to sell in order to receive the $750 million they need?

• A)30,000,000
• B)31,914,894
• C)500,000,000
• D)750,000,000

Understand the disadvantages of social communication models and mitigation strategies by companies.

Recognize the phenomena of information overload, its effects, and coping mechanisms.

Understand the role and impact of technology in enhancing the effectiveness of communication processes.

Recognize the importance of ethics, transparency, and legal considerations in communication, especially in digital environments.

---

Definitions:

Specialization

The practice of focusing resources on the production of specific goods or services to increase efficiency and expertise.

Total Output

The total quantity of goods or services produced by a firm or economy over a specific period.

Invisible Hand

The concept that the self-regulating nature of the marketplace leads to the efficient allocation of resources through individuals pursuing their own self-interest, originally introduced by Adam Smith.

Federal Government

A system of government in which power is divided between a central authority and constituent political units, such as states or provinces.