Denver Mines Is Offering 45,000 Shares of Stock to the Public

question 54

Multiple Choice

Denver Mines is offering 45,000 shares of stock to the public in a general cash offer.The offer price is $48 a share and the underwriter's spread is 9.5 percent.The administrative costs are estimated at $360,000.How much will Denver Mines net from this stock offering assuming the issue is completely sold?

• A)$1,629,000
• B)$1,646,000
• C)$1,594,800
• D)$1,705,450
• E)$1,988,950

---

Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, essentially representing the owners’ equity.

Note Receivable

A written promise for the amounts to be received, typically recording a receivable where the individual or entity promises to pay a sum of money at a future date.

Investing Cash Flow

Cash generated or spent on activities related to a company's investments, such as purchasing or selling assets.

Financing Cash Flow

Cash flows related to the financing of the company's operations, including debt, equity, and dividend payments.