Calculating Costs of Issuing Stock Video Games,Inc

question 117

Multiple Choice

Calculating Costs of Issuing Stock Video Games,Inc.,with the help of its investment bank recently issued 10 million shares of new stock.The offer price on the stock was $47.50 per share and Video Games received a total of $446,500,000 through this stock offering.Calculate the net proceeds and the underwriter's spread on the stock offering.What percentage of the gross price is the investment bank charging Video Games for underwriting the stock issue?

• A)3 percent
• B)30 percent
• C)6 percent
• D)9 percent

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Definitions:

Durkheim

A foundational sociologist who explored the complex relationship between individuals and society, emphasizing the importance of social norms and values.

Dramaturgical Perspective

An approach in sociology that depicts human interaction as theatrical performances where individuals are actors playing roles.

Impression Management

A process by which people attempt to control how others perceive them.

Cohesiveness

The degree to which members of a group or organization are united in their pursuit of common goals and exhibit loyalty to each other.