A firm is making an initial public offering. The investment bankers agree to a firm underwriting commitment

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A firm is making an initial public offering. The investment bankers agree to a firm underwriting commitment for 500,000 shares that would be priced to the public at $36 a share. The underwriter's spread is 7 percent. What were the proceeds for the issuer and the underwriter?
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Fundamentals of Corporate Finance

ISBN: 978-1118845899

3rd edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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