Underwriting spread for firm commitment

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Reference no: EM13885338

Sterling, Cooper, Draper, Price would like to go public to raise $58 million to support expected growth. Their investment bank charges the following:

7.7% underwriting spread for a firm commitment

$210,128 in legal fees

The underwriter feels that the IPO will be priced at $29.95 per share. How many shares must be issued to net the company the proceeds it needs to fund its future investment (Hint: The total amount issued must cover the required net proceeds plus all fees and the underwriter's spread)?

Reference no: EM13885338

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