What are the net proceeds for the issuer

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Question - A company intends to issue 2 million shares at an offer price of $20. The share offer is underwritten on a best-efforts basis and that the underwriter agrees to a spread of 7 percent of the offer price. The offer remains unsuccessful, with subscriptions for only 95 percent of the shares on offer. What are the net proceeds for the issuer and the underwriter in a best-efforts offering?

Reference no: EM133161961

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