Dixon Corporation is considering a public offering of common stock. The firm will offer one million shares of common stock for sale. The estimated selling price is $45 per share with Dixon Corp. receiving $40.50 per share after the offering. Registration fees are estimated at $275,000.
a) What is the spread in dollars? In percent?
b) What are the total expenses of the issue?
c) If Dixon Corp. needs to generate $28 million, how many shares will have to be sold?

Question

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The Answer of Dixon Corporation is considering a public offering of common stock. The firm will offer one million shares of common stock for sale. The estimated selling price is $45 per share with Dixon Corp. receiving $40.50 per share after the offering. Registration fees are estimated at $275,000.
a) What is the spread in dollars? In percent?
b) What are the total expenses of the issue?
c) If Dixon Corp. needs to generate $28 million, how many shares will have to be sold?

Dixon Corporation Is Considering a Public Offering of Common Stock