FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Winston Sporting Goods is considering a
public offering of common stock. Its
investment banker has informed the
company that the retail price will be $18.40
per share for 670,000 shares. The company
will receive $16.75 per share and will incur
$225,000 in registration, accounting, and
printing fees.
1. What is the spread on this issue in
percentage terms?
2. What are the total expenses of the issue
a percentage of the total value (at
retail)?
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Transcribed Image Text:Winston Sporting Goods is considering a public offering of common stock. Its investment banker has informed the company that the retail price will be $18.40 per share for 670,000 shares. The company will receive $16.75 per share and will incur $225,000 in registration, accounting, and printing fees. 1. What is the spread on this issue in percentage terms? 2. What are the total expenses of the issue a percentage of the total value (at retail)?
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