Elle Inc. plans to issue 4 million new shares of its stock. In discussions with its investment bank, Elle learns that the bankers recommend a net proceed of $75.10 per share and they will charge an underwriter's spread of 7 percent of the gross proceeds. In addition, Elle must pay $2 million in legal and other administrative expenses for the seasoned stock offering. Calculate the gross proceeds per share received by Elle from the sale of the 4 million shares of stock.

Question

Quizplus · Accepted Answer

The Answer of Elle Inc. plans to issue 4 million new shares of its stock. In discussions with its investment bank, Elle learns that the bankers recommend a net proceed of $75.10 per share and they will charge an underwriter's spread of 7 percent of the gross proceeds. In addition, Elle must pay $2 million in legal and other administrative expenses for the seasoned stock offering. Calculate the gross proceeds per share received by Elle from the sale of the 4 million shares of stock.

Elle Inc Plans to Issue 4 Million New Shares of Its