Which of the following statements regarding best efforts IPOs is FALSE? OA. O B. If the entire issue does not sell out, the underwriter is on the hook. 7. The underwriter does not guarantee that the stock will be sold, but instead tries to sell the stock for the best possible price. C. For smaller IPOs, the underwr iter commonly accepts the deal on this basis. ften these arrangements have an all-or- none clause: either all of the shares are sold in the IPO, or the deal is called off. O D. 8. Use the information for the question(s) below. Omicron Technologies has $50 million in excess cash and no debt. The firm expects to generate add of $40 million per year in subsequent years and will pay out these future free cash flows as regular dividends. Omicrons unlevered cost of capital is 10% and there are 10 million shares outstanding. Omicron's board is meeting to decide w ut its $50 milin in excess cash as a special dividend or to use it to repurchase shares of the firm's stock. Assume that you own 2500 shares of Omicron stock and that Omicron uses the entire $50 million to repurchase shares Suppose you dividend. The number of shares that you would have to sell in order to receive the same amount of cash as if Omicron paid the special dividend is closest to: are unhappy with Omicron's decision and would prefer that Omicron used the excess cash to pay a special O A. 275 O B. 125 . 310 O D. 250