An Investment Banker Agrees to a Firm Commitment Offering of 1.2

question 10

Multiple Choice

An investment banker agrees to a firm commitment offering of 1.2 million shares of Bally stock. The offer price is set at $25.50 and the spread is 30 cents per share. If the stock is actually sold to the public at $26.00,however,what is the amount of funds Bally receives? (Ignore any other fees or expenses.)

• A)$31,200,000
• B)$30,600,000
• C)$30,240,000
• D)$29,280,000
• E)$28,120,000

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Definitions:

Hardy-Weinberg Theorem

A principle stating that allele and genotype frequencies in a population will remain constant from generation to generation in the absence of other evolutionary influences.

Genetic Bottleneck

An event in which a significant percentage of a population or species is killed or otherwise prevented from reproducing, leading to a decrease in genetic diversity.

Founder Effect

A form of genetic drift that occurs when a new population is established by a very small number of individuals from a larger population, leading to reduced genetic variation.

Genetic Drift

A mechanism of evolution that causes changes in allele frequencies in a population due to random sampling effects, particularly in small populations.