Highlander Homes Stock Trades at $30 Per Share and There

question 55

Multiple Choice

Highlander Homes stock trades at $30 per share and there are 50 million shares outstanding. The management would like to issue a total of 10 million (primary and secondary) shares in an SEO. If the underwriter charges 5% of gross proceeds, 25% of the shares are primary shares sold to new investors, and 75% of the shares are secondary shares sold to new investors, what percentage of the company will be owned by the new investors?

• A) 13.33%
• B) 18.10%
• C) 14.29%
• D) 19.05%

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Definitions:

Graphic HMI Terminals

Devices that provide an interface for human-machine interaction, displaying graphics and information visually for users to control and monitor machinery or systems.

Continuous Process

A manufacturing or production process that operates non-stop, typically involving fluid or semi-fluid materials, aiming for a steady-state operation.

Product Material

The raw substances or components used in the manufacturing or construction of a product.

Actuators

Devices that convert energy (usually electrical, hydraulic, or pneumatic) into mechanical motion to perform a physical task or operation.