What is the underwriters spread per share on the issue

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Reference no: EM13941923

Calculating Costs of Issuing Stock Paige's Purses, Inc. needs to raise $25.20 million to finance plant expansion. In discussions with its investment bank, Paige's learns that the bankers recommend an offer price (or gross proceeds) of $52 per share and Paige's will receive $45.50 per share. What is the underwriter's spread per share on the issue?

Which of the following is correct?

a.) $6.50

b.) $0

c.) $52

d.) $45.50

Reference no: EM13941923

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