Plasti-tech Inc. has decided to go public and has sold 2 million of its shares to its underwriter for $20 per share. The underwriter then sold them to the public for $22 each. Plasti-tech also encountered $0.5 million in administrative fees. Soon after the issue, the stock price rose to $25. Find Plasti-tech Inc.'s total cost of this issue.
A) $4.5 million
B) $9.5 million
C) $10.5 million
D) $14.5 million
Correct Answer:
Verified
Q84: Second stage financing:
A) involves a substantial increase
Q86: Which one of the following statements is
Q87: Which one of the following is not
Q89: Some investors believe that the decision by
Q92: If an investor can earn 20% on
Q96: Which one of these types of financing
Q97: Firms go public primarily to:
A) raise additional
Q100: A rights issue offers the firm's shareholders
Q101: What are the benefits of shelf registration
Q102: Discuss the functions conducted by security underwriters.
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents