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Calculating costs of issuing stock

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Calculating Costs of Issuing Stock

Your company needs to raise $4.10 million to finance plant expansion. In discussions with its investment bank, you learn that the bankers recommend a gross price of $50.50 per share and that 100,000 shares of stock be sold. If the net proceeds on the stock sale leaves your company with $4.10 million, what is the underwriter's spread per share on the stock issue.

Reference no: EM132393519

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