Sagamore Paint recently went public in a best efforts offering. The company offered 175,000 shares of stock
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Question:
Sagamore Paint recently went public in a best efforts offering.
The company offered 175,000 shares of stock for sale at an offer price of $29 per share. The current shareholders didn't sell their shares. The management costs associated with the offering were $415,000 and the underwriter's spread was 6.5%.
After completing their sales efforts, the underwriters determined that they sold a total of 168,700 shares. What were the net proceeds to the company?
Required:
a) How much is the price per share received by the company?
b) How much are the gross proceed?
c) How much are the proceeds?
Related Book For
Financial Markets and Institutions
ISBN: 978-0077861667
6th edition
Authors: Anthony Saunders, Marcia Cornett
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