Winston Sporting Goods is considering a public offering of common stock. Its investment banker has informed the
Question:
Winston Sporting Goods is considering a public offering of common stock. Its investment banker has informed the company that the retail price will be $16.85 per share for 550,000 shares. The company will receive $15.40 per share and will incur $180,000 in registration, accounting, and printing fees.
a. What is the spread on this issue in percentage terms? What are the total expenses of the issue as a percentage of total value (at retail)?
b. If the firm wanted to net $15.99 million from this issue, how many shares must be sold?
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Winston Sporting Goods a 1685 1540 145 spread 1451685 861 spread Total Expenses 145 550...View the full answer
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Related Book For 
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
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