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Bailey's Dog Pens, Inc

Question 61

Multiple Choice

Bailey's Dog Pens, Inc., with the help of its investment bank recently issued 5 million shares of new stock. The offer price on the stock was $19.5 per share and Bailey's Dog Pens received a total of $70 million from the stock offering. What percentage of the gross proceeds is the investment bank charging Bailey's Dog Pens for underwriting the stock issue?


A) 27.29 percent
B) 28.21 percent
C) 26.92 percent
D) 25.31 percent

Correct Answer:

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