Which term refers to the money offered to fund a start-up company?

	a.	private placement
	b.	bought deal
	c.	project financing
	d.	venture capital fund

In a Canadian IPO issue, the issuing company has incurred $8 million for the floatation costs and legal fees. The issue involves 45 million shares. As a firm commitment written deal, the underwriter agrees to buy the shares at $19 each and resells to the public at $20.50 per share. What will be the percentage of direct costs required in this deal?

	a.	10.60%
	b.	9.10%
	c.	8.40%
	d.	11.50%

With a firm commitment underwriting, an investment bank agrees to sell 2 million shares to the public at $10 per share with a spread of $1. How much does the issuing company receive if only 1.5 million shares are sold?

	a.	$13.5 million
	b.	$18.0 million
	c.	$15.0 million
	d.	$20.0 million

Canadian Corporation incurred $4 million for the floatation costs and legal fees of its IPO. The issue involved 17 million shares. As a firm commitment written deal, the underwriter agreed to buy the shares at $50 each and resell them to the public at $54 per share. What will be the percentage of direct costs required in this deal?

	a.	15.01%
	b.	5.60%
	c.	13.33%
	d.	21.76%

Which of the following statements best describes listing on a stock exchange?

	a.	Listing provides a company with some free advertising, and it may enhance the firms prestige and help it do more business.
	b.	Listing is a decision of more significance to a firm than going public.
	c.	Listing reduces the reporting requirements for firms, because listed firms file reports with the exchange rather than with the security commission.
	d.	The OTC is the second largest market for listed stock, and it is exceeded only by the TSX.