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Computation of number of shares to be used for required amount of requirement.
McDougal Entertainment is offering 75,000 shares of stock to the public in a general cash offer. The offer price is $36 a share and the underwriter's spread is 7.5 percent. The administrative costs are estimated at $350,000. How much will McDougal Entertainment receive from this stock offering?
a) $2,147,500
b) $2,350,000
c) $2,497,500
d) $2,550,500
e) $2,700,000
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