Question: The Fitness Studio Inc with the help of its investment

The Fitness Studio, Inc., with the help of its investment bank, recently issued 2.5 million shares of new stock. The offer price on the stock was $20.50 per share and The Fitness Studio received a total of $48,687,500 through this stock offering. Calculate the net proceeds and the underwriter’s spread on the stock offering. What percentage of the gross price is the investment bank charging The Fitness Studio for underwriting the stock issue?

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  • CreatedSeptember 23, 2014
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