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?

Name: 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?
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Quizplus · Accepted Answer

$12.50(1-.0725)= $11.59

Bavarian Brewhouse Is Planning on Going Public