The offer price would need to drop to ?dollar nothing

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Reference no: EM131558854

Your firm is selling 10 million shares in an IPO. You are targeting an offer price of $ $18.09 per share. Your underwriters have proposed a spread of 6.2%?, but you would like to lower it to 4.2%. ?However, you are concerned that if you do? so, they will argue for a lower offer price. Given the potential savings from a lower? spread, how much lower can the offer price go before you would have preferred to pay 6.2% to get $18.09 per? share?

The offer price would need to drop to ?$ nothing. ?(Round to the nearest? cent.)

Reference no: EM131558854

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