Hi teacher please help me this question general accounting How much will a firm receive in net funding from a firm commitmentunderwriting of 250,000 shares priced to the public at $40 if a 10%underwriting spread has been added to the price paid by the underwriter?Additionally, the firm pays $600,000 in legal fees.A. $8,400,000B. $8,460,025C. $8,490,909D. $8,545,455

Step 1: Define Net amount to be received by the firmThe net amount to be received by the firm is…

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Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation

Section: Chapter Questions

Problem 5P

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How much will a firm receive in net funding from a firm commitment underwriting of 300,000 shares priced to the public at $30 if a 10% underwriting spread has been added to the price paid by the underwriter? Additionally, the firm pays $600,000 in legal fees.
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