Your company needs to raise $50 million to finance plant expansion. In discussions with its investment bank, you learn that the bankers recommend a gross price of $75 per share and that 675,000 shares of stock be sold. If the net proceeds on the stock sale leave your company with $50 million, what is the underwriter's spread on the stock issue?
A) $0.93
B) $1.85
C) $6.67
D) $9.00
Correct Answer:
Verified
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