Multiple Choice
The Boat Works decided to go public by offering a total of 135,000 shares of common stock to the public. The company hired an underwriter who arranged a firm commitment underwriting and an initial selling price of $24 a share with a spread of 8.3 percent. As it turned out, the underwriters only sold 122,400 shares to the public. What is the amount paid to the issuer?
A) $2,227,280
B) $3,074,420
C) $2,971,080
D) $2,692,820
E) $2,477,380
Correct Answer:
Verified
Correct Answer:
Verified
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