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

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Definitions:

Adaptation-Level

A theory suggesting that people adapt to new stimuli, and their judgments of stimuli are influenced by past experiences.

External Locus

A psychological concept where an individual believes that control over their life events and outcomes comes from external forces or influences.

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