Calculating Costs of Issuing Stock Plains Corp

question 43

Multiple Choice

Calculating Costs of Issuing Stock Plains Corp.recently went public with an initial public offering in which they received a total of $25 million in new capital funding.The underwriter used a firm commitment offering in which the offer price was $25 and the underwriter's spread was $1.00.Plains also paid legal and other administrative costs of $800,000 for the IPO.What is the number of shares issued through this IPO?

• A)1,075,000
• B)1,041,667
• C)1,032,000
• D)1,008,334

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Definitions:

Spanish Tyranny

Refers to the oppressive rule and exploitative governance by Spanish authorities over their colonies, particularly noted in historical contexts.

Seventeenth-Century Migrants

Individuals or groups who relocated, often across national boundaries, during the 1600s, frequently for reasons such as religious freedom, economic opportunity, or as a result of being transported as convicts or indentured servants.

Lower-Class Men

Individuals from the bottom socio-economic tier of society, often characterized by lower income and limited access to resources.

Headright System

A land-grant policy that promised fifty acres to any colonist who could afford passage to Virginia, as well as fifty more for any accompanying servants. The headright policy was eventually expanded to include any colonists—and was also adopted in other colonies.