Panama City Beach Company
Panama City Beach Company needs to raise $60 million of new equity capital. Its common stock is currently selling for $70 per share. The investment bankers require an underwriting spread of 5 percent of the offering price, and the company's legal, accounting, and printing expenses associated with the seasoned offering are estimated to be $200,000.
-What is the net price per share that Panama City Beach Company will receive from this offering?

Question

Quizplus · Accepted Answer

= .05*$70 = $3.50
Net = $70 - $3.50 =$66.50