Pawprints Paint recently went public in a best efforts offering. The company offered 85,000 shares of stock for sale at an offer price of $41 per share. The administrative costs associated with the offering were $325,000 and the underwriter's spread was 8 percent. After completing their sales efforts, he underwriters determined that they sold a total of 81,200 shares. What were the net proceeds to the company? Multiple Choice $2,737,864 $2,556,200 $3,062,864 $2,412,864 $2,881,200

Pawprints Paint recently went public in a best efforts offering. The company offered 85,000 shares of stock for sale at an offer price of $41 per share. The administrative costs associated with the offering were $325,000 and the underwriter's spread was 8 percent. After completing their sales efforts, he underwriters determined that they sold a total of 81,200 shares. What were the net proceeds to the company? Multiple Choice $2,737,864 $2,556,200 $3,062,864 $2,412,864 $2,881,200

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter20: Financing With Derivatives

Section: Chapter Questions

Problem 12P

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