Convex Incorporated Sells 10 Million Shares in an SEO -

question 59

Multiple Choice

Convex Incorporated sells 10 million shares in an SEO - 6 million being primary shares issued by the company and 4 million being secondary shares sold by investors in the company. At the time of the sale, Convex's shares were selling at $8.00 per share. If the underwriter charges 6% of the gross proceeds as a fee, how much money was raised in the sale?

• A)$45.12 million
• B)$48.00 million
• C)$75.20 million
• D)$36.25 million

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Definitions:

Online Reverse Auctions

Digital marketplaces where suppliers bid to sell their goods or services to a buyer, with prices typically decreasing over time, often used to enhance competitiveness and reduce costs.

Competitive Supply Market

Refers to a market environment where multiple suppliers are competing to offer products or services, usually driving down prices and increasing quality.

Switch Suppliers

The process of changing from one supplier to another to improve service, reduce costs, or gain other advantages.

Pareto Analysis

A statistical technique in decision-making used for the selection of a limited number of tasks that produce significant overall effect. It uses the principle that 80% of results come from 20% of the actions.