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 and the company is planning on issuing 1 million shares,what are the total proceeds that Bavarian will receive?
A) $12,500,000
B) $11,593,750
C) $10,750,000
D) $13,275,500
Correct Answer:
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