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Bavarian Brewhouse Is Planning on Going Public

Question 17

Multiple Choice

Bavarian Brewhouse is planning on going public.Under the underwriting agreement the underwriting discount is 7.25%.If the offering price of the stock is set at $12.50 per share,what is the per share proceeds that Bavarian will receive?


A) $11.59
B) $10.67
C) $13.41
D) $12.50

Correct Answer:

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