AbacusCom Has Just Made an Initial Public Offering of Stock

question 36

Multiple Choice

Abacus.com has just made an initial public offering of stock with the help of an investment bank.It sold 5 million shares at a price of $84 each.How much money did the corporation raise through this stock offering?

• A)$420 million
• B)zero,because a firm only acquires funds on the secondary market
• C)$336 million
• D)$420 million minus fees paid to the investment bank
• E)It depends on the interest rate

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Definitions:

Iliad

An ancient Greek epic poem attributed to Homer, chronicling the siege of Troy and highlighting themes of heroism, wrath, and the follies of gods and men.

Repoussé

Repoussé is a metalworking technique in which a malleable metal (such as gold, silver, copper) is ornamented or shaped by hammering from the reverse side to create a design in low relief.

Lost Wax

A method of metal casting in which a molten metal is poured into a mold that has been created by means of a wax model, which melts and runs out, leaving a detailed impression behind.

Carving

A sculptural technique in which the artist cuts away material (for example, from a stone block) in order to create a statue or a relief.