Question: You are negotiating with your underwriters in a firm commitment offering of 9 million primary shares. You have two options: set the IPO price at

You are negotiating with your underwriters in a firm commitment offering of 9 million primary shares. You have two options: set the IPO price at $22.00 per share with a spread of 7%, or set the price at $21.60 per share with a spread of 4 %. Which option raises more money for your firm? The net price to the firm of the first option is $___

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