Raybac is about to go public. Its present stockholders own 500,000 shares. The new public issue will represent 700,000 shares. The shares will be priced at $25 to the public with a 5% spread. The out-of-pocket costs in addition to the spread will be $450,000. What are the net proceeds to the firm?
A)$18,750,000
B)$17,200,000
C)$18,250,000
D)$16,175,000

Question

Quizplus · Accepted Answer

The Answer of Raybac is about to go public. Its present stockholders own 500,000 shares. The new public issue will represent 700,000 shares. The shares will be priced at $25 to the public with a 5% spread. The out-of-pocket costs in addition to the spread will be $450,000. What are the net proceeds to the firm?
A)$18,750,000
B)$17,200,000
C)$18,250,000
D)$16,175,000

Raybac Is About to Go Public