Convex Incorporated Sells 10 Million Shares of Stock in an SEO-8

question 57

Multiple Choice

Convex Incorporated sells 10 million shares of stock in an SEO-8 million being primary shares issued by the company and 2 million being secondary shares sold by investors in the company. At the time of the sale, Convex's stock was selling at $7.50 per share. If the underwriter charges 4% of the gross proceeds as a fee, how much money was raised in the sale?

• A) $46.08 million
• B) $57.60 million
• C) $60.48 million
• D) $92.16 million

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Definitions:

Dissolve

To dissolve is to officially end the existence of an entity or agreement, such as dissolving a corporation or dissolving a marriage through divorce.

Bankruptcy

A judicial process that enables individuals or businesses struggling to fulfill their financial commitments to obtain relief from part or all of their debts.

LLC Member

An individual or entity that owns a part of a Limited Liability Company and has certain rights and responsibilities as outlined in the LLC's operating agreement.

Dissociation

The process or condition of disconnecting or separating from an association, partnership, or relationship.