Use the Table for the Question(s)below

question 90

Multiple Choice

Use the table for the question(s) below.
David founds a company and goes through the investment rounds shown below:
He decides to take the company public through an IPO,issuing 2 million new shares.Assuming that he successfully completes the IPO,the net income for the next year is estimated to be $8 million.His banker informs him that the price of shares should be set using average price-earnings ratios for similar businesses,which is 15.0.
-An IPO is offered at $14 per share for 6 million shares.The IPO underwriters had a spread of 7.5%.What proceeds did the firm receive from the IPO?

• A)$6.3 million
• B)$90.3 million
• C)$84 million
• D)$77.7 million
• E)$75 million

---

Definitions:

Employees Table

A structured set of data in a database specifically organized to hold information about employees within an organization.

Datasheet View

A display format in database applications that shows records in rows and columns, similar to a spreadsheet.

Infinity Symbol

A mathematical symbol representing the concept of infinity, typically depicted as a horizontal figure eight ( ∞ ).

One-To-Many Relationship

A type of relationship in databases where a single record in one table can be associated with multiple records in another table.