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:

Competitive Market Economy

An economic system where a large number of buyers and sellers interact, resulting in the efficient allocation of resources through competitive pricing.

New Product

A good, service, or idea that has been recently introduced to the market, offering novel features or benefits to consumers.

Competitive Price-Searcher Market

A market structure where firms have some degree of market power in setting prices due to product differentiation, but still face competition from other firms.

Losses

The amount by which costs exceed income, resulting in a negative financial outcome for businesses or individuals.