What are the net proceeds to the firm

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Problem

Raybac is about to go public. Its present stockholders own 450,000 shares. The new public issue will represent 830,000 shares. The shares will be priced at $30 to the public with a 16% spread. The out-of pocket costs will be $510,000. What are the net proceeds to the firm?

Reference no: EM131969257

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