Highlander Homes Stock Trades at $34 Per Share and There

question 28

Multiple Choice

Highlander Homes stock trades at $34 per share and there are 50 million shares outstanding. The management would like to raise $200 million in an SEO. If the underwriter charges 6% of gross proceeds, how many shares must it sell?

• A) 5.32 million
• B) 5.63 million
• C) 5.94 million
• D) 6.26 million

---

Definitions:

Bootstrap Resamples

Sampling method involving repeatedly drawing samples, with replacement, from a dataset to estimate the distribution of a statistic.

P-value

The likelihood of seeing a test statistic as extreme or more extreme than the one measured, assuming the null hypothesis holds.

Bootstrap Distribution

A data-driven simulation method for estimating the sampling distribution of an estimator by resampling with replacement from the original data.

Small Sample

A subset of a population used in statistical analysis that is considered to be too small to reliably indicate properties of the population.