Paige's Purses, Inc., needs to raise $25 million to finance plant expansion. In discussions with its investment bank, Paige's Purses learns that the bankers recommend an offer price (or gross proceeds) of $50 per share and Paige's Purses will receive $45 per share. What is the underwriter's spread on the issue?
A) $5
B) $45
C) $50
D) $0
Correct Answer:
Verified
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