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What are the net proceeds to the firm

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Raybac is about to go public. Its present stockholders own 500,000 shares. The new public issue will represent 700,000 shares. The shares will be priced at $25 to the public with a 5% spread. The out-of pocket costs will be $450,000. What are the net proceeds to the firm?

A. $18,750,000

B. $17,200,000

C. $18,250,000

D. $16,175,000

Reference no: EM131734476

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