Question: XYZ Ltd plans to do a share offering for its expansion to the international market. The net amount required for the expansion is $46 million.

XYZ Ltd plans to do a share offering for its expansion

XYZ Ltd plans to do a share offering for its expansion to the international market. The net amount required for the expansion is $46 million. The underwriter spread for the share offering is 8%. The market price is $25 per share on the offering day. The total out-of-pocket expense is $320,000. The company's share price becomes $30 on the first day of trading. a) Calculate the total amount needed to be raised in the share offering. (1 mark) b) Calculate the total underwriting spread in dollars. (1 mark)

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