Braynerd Chemicals Sells 40 Million Shares in an SEO -

question 9

Multiple Choice

Braynerd Chemicals sells 40 million shares in an SEO - 35 million being primary shares issued by the company and 5 million being secondary shares sold by investors in the company. At the time of the sale, Braynerd's shares were selling at $22.50 per share. If the underwriter charges 6% of the gross proceeds as a fee, how much money was raised in the sale?

• A)$846.00 million
• B)$740.25 million
• C)$553.00 million
• D)$620.85 million

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Definitions:

Pension Plan

A type of retirement plan where an employer contributes to a pool of funds set aside for an employee's future benefit.

Contractual Agreement

A legally binding agreement between two or more parties outlining the terms and conditions of a deal.

Benefits

Various forms of non-wage compensations provided to employees in addition to their normal wages or salaries.

Bond Indenture

A legal contract between a bond issuer and a bondholder specifying the terms of the bond, such as the interest rate, repayment schedule, and other conditions.