Dixon Corporation is considering a public offering of common stock.The firm will offer one million shares of common stock for sale.The estimated selling price is $30 per share with Dixon Corp.receiving $26.25 per share after the offering.Registration fees are estimated at $275,000.
A)What is the spread in dollars? In percent?
B)What are the total expenses of the issue?
C)If Dixon Corp.needs to generate $28 million,how many shares will have to be sold?

Question

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The Answer of Dixon Corporation is considering a public offering of common stock.The firm will offer one million shares of common stock for sale.The estimated selling price is $30 per share with Dixon Corp.receiving $26.25 per share after the offering.Registration fees are estimated at $275,000.
A)What is the spread in dollars? In percent?
B)What are the total expenses of the issue?
C)If Dixon Corp.needs to generate $28 million,how many shares will have to be sold?

Dixon Corporation Is Considering a Public Offering of Common Stock