The Pegasus Company Is Considering a Share Issue to Finance

question 23

Multiple Choice

The Pegasus Company is considering a share issue to finance a new production facility.A feasibility study shows that a total of $25 million in new equity is needed to acquire new equipment.The direct costs of issue are estimated at 5% of the amount raised.How large does the issue need to be?

• A)$26 315 789
• B)$26 041 667
• C)$25 853 429
• D)$25 000 000
• E)$26 250 000

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Definitions:

Watergate Investigation

A major political scandal in the United States involving the administration of President Richard Nixon, following a break-in at the Democratic National Committee headquarters and subsequent efforts to cover it up.

Oval Office Recordings

Audio recordings made secretly in the Oval Office, most famously by President Richard Nixon, which led to his resignation in the wake of the Watergate scandal.

Geneva Accords

Agreements concluded in Geneva in 1954, which temporarily separated Vietnam into two zones, aiming to end hostilities in Indochina and pave the way for political negotiations.

1954

The year notable for the U.S. Supreme Court decision Brown v. Board of Education, which declared state laws establishing separate public schools for black and white students to be unconstitutional.