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:

Hemocoel

The primary body cavity of most invertebrates, containing circulatory fluid, and is distinct from the blood vessels.

Hemolymph

A fluid equivalent to blood in most invertebrates, occupying the hemocoel and performing similar transport functions.

Grasshoppers

Insects belonging to the suborder Caelifera, known for their powerful hind legs that allow them to leap and their role in various ecosystems as herbivores.

Hemoglobin

A protein in red blood cells that carries oxygen from the lungs to the body's tissues and returns carbon dioxide from the tissues back to the lungs.