Multiple Choice
Highlander Homes stock trades at $35 per share and there are 50 million shares outstanding. The management would like to raise $300 million in an SEO. If the underwriter charges 5% of gross proceeds, and all the shares are primary shares sold to new investors, what percentage of the company will be owned by the new investors?
A) 12.99%
B) 13.76%
C) 14.52%
D) 15.29%
Correct Answer:
Verified
Correct Answer:
Verified
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