Calculating Costs of Issuing Stock Polly's Ponies,Inc

question 14

Multiple Choice

Calculating Costs of Issuing Stock Polly's Ponies,Inc.,with the help of its investment bank recently issued 7.5 million shares of new stock.The offer price on the stock was $15.00 per share and Polly's Ponies received a total of $105.75 million from the stock offering.Calculate the net proceeds and the underwriter's spread charged by the underwriter to Polly's Ponies.What percentage of the gross proceeds is the investment bank charging Polly's Ponies for underwriting the stock issue?

• A)3 percent
• B)6 percent
• C)9 percent
• D)94 percent

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A belief or set of beliefs held and taught by a church, political party, or other group.

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The theory that different sensory nerves convey specific types of sensory information to the brain.

Sensory Neuron

A type of neuron that transmits signals from sensory receptors towards the central nervous system, allowing perception of sensory stimuli.

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The detection, by sense organs, of physical energy emitted or reflected by physical objects.