Question: GSM Corporation sold 20 million shares of common stock in
GSM Corporation sold 20 million shares of common stock in a seasoned offering. The market price of the company’s shares immediately before the offering was $14.75. The shares were offered to the public at $14.50, and the underwriting spread was 4%. The company’s expenses associated with the offering were $7.5 million. How much new cash did the company receive?
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