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Sea Grove Beach Company

Question 53

Multiple Choice

Sea Grove Beach Company
Sea Grove Beach Company needs to raise $30 million of new equity capital. Its common stock is currently selling for $44 per share. The investment bankers require an underwriting spread of 7 percent of the offering price, and the company’s legal, accounting, and printing expenses associated with the seasoned offering are estimated to be $500,000.

-What is the net price per share that Sea Grove Beach Company will receive from this offering?


A) $40.24
B) $40.92
C) $42.24
D) $43.93

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