Pawprints Paint recently went public in a best efforts offering. The company offered 140,000 shares of stock for sale at an offer price of $22 per share. The administrative costs associated with the offering were $380,000 and the underwriter's spread was 8.5 percent. After completing their sales efforts, the underwriters determined that they sold a total of 133,700 shares. What were the net proceeds to the company?
Pawprints Paint recently went public in a best efforts offering. The company offered 140,000 shares of stock for sale at an offer price of $22 per share. The administrative costs associated with the offering were $380,000 and the underwriter's spread was 8.5 percent. After completing their sales efforts, the underwriters determined that they sold a total of 133,700 shares. What were the net proceeds to the company?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Pawprints Paint recently went public in a best efforts offering. The company offered 140,000 shares of stock for sale at an offer price of $22 per share. The administrative costs associated with the offering were $380,000 and the underwriter's spread was 8.5 percent. After completing their sales efforts, the underwriters determined that they sold a total of 133,700 shares. What were the net proceeds to the company?
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