Sipe's Paint and Wallpaper, Inc

question 95

Multiple Choice

Sipe's Paint and Wallpaper, Inc., needs to raise $1 million to finance plant expansion. In discussions with its investment bank, Sipe's Paint and Wallpaper learns that the bankers recommend a gross price of $40 per share and that 30,000 shares of stock be sold. If the net proceeds on the stock sale leave Sipe's Paint and Wallpaper with $1 million, what percent of the total raised represents net proceeds to the firm?

• A) 81.98 percent
• B) 75.57 percent
• C) 83.33 percent
• D) 86.67 percent

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Definitions:

Halo Effects

A cognitive bias where an individual's overall impression of a person influences how they feel and think about their character or abilities.

Managerial Process

A series of actions or steps taken by managers to achieve organizational goals, including planning, organizing, leading, and controlling.

Recruitment

The process of finding and hiring the best-qualified candidate for a job opening.

Selective Perception

The process by which individuals perceive what they want to in media messages while ignoring opposing viewpoints.